ECB’s Nagel: ‘Monetary Policy Measures Are Working’

17 October 2023

By Isabel Teles – FRANKFURT (Econostream) – European Central Bank Governing Council member Joachim Nagel on Tuesday said that the ECB’s monetary policy measures were having an effect on inflation.

In a speech at a reception in Berlin of the German Bundesbank, which he heads, Nagel said that compared to one year ago, there had been a notable decrease in inflation ‘partly because the Eurosystem has acted decisively.’

‘The monetary policy measures are working’, he said. ‘However, inflation remains high. And uncertainty too.’

The ECB Governing Council made data-oriented decisions, he said, declining to elaborate on monetary policy further.

That Germany was once again being called the ‘sick man of Europe’ was undeserved, he insisted.

‘The weak phase of the German economy is ... not primarily of a structural nature, as the debate about possible deindustrialisation suggests’, he said.

‘This in turn corresponds to most forecasts for Germany for the coming year 2024. They are already predicting an economic recovery’, he said. ‘Therefore, I cannot agree with the “sick man” diagnosis.’