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Nagel: Wrong To Bet On Fast Cuts After A Peak In Rates

ECB
  • Commenting in Handelsblatt, Bundesbank’s Nagel says its wrong to bet on fast cuts after a peak in rates has been reached.
  • Other points aren’t groundbreaking: the ECB has a data-dependent approach to monetary policy, we still haven’t reached the inflation target. He is currently not worried about a wage-price spiral.

It follows a similar tone to prior commentary,

  • *ECB'S NAGEL: WILL HAVE TO SEE WHAT WE'LL DO IN SEPTEMBER – bbg (Aug 28)
  • *ECB'S NAGEL: WILL WAIT FOR DATA BEFORE TAKING NEXT DECISION – bbg (Aug 28)
  • *ECB MAY NEED TO BE AT RATE PLATEAU FOR WHILE WHEN THERE: NAGEL – bbg (Aug 28)
  • And recall yesterday’s more reserves- and bank-focused comments which included *NAGEL: ECB MANDATE IS PRICE STABILITY, NOT TO MAKE BANKS HAPPY - bbg

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