ECB’s Nagel: Increasing Probability of Interest Rate Cut in June
17 April 2024
By Isabel Teles – WASHINGTON (Econostream) – European Central Bank Governing Council member Joachim Nagel on Wednesday said that the chances that the ECB would start easing monetary policy in June were growing, but that there remained reservations.
In an interview with CNBC on the margins of the spring meetings of the International Monetary Fund and World Bank, Nagel, who heads the German Bundesbank, said, ‘Talking about the June meeting, I think the probability is increasing that we will see a rate cut in June, but there are still some caveats.’
Services and core inflation were still high, he said, and it was necessary to see if new projections confirmed the disinflation process.
‘For the June meeting we will get our projections, so we will get our new forecasts and if there is a confirmation that inflation is really going down and we will achieve our target in 2025, as I said, the probability is becoming higher that this rate cut is here for the June meeting’, he said.
Oil prices were an uncertainty in a volatile environment, he said.
‘We are more resilient than maybe we were two years ago’, he said. ‘But nevertheless if oil prices, energy prices, are going up this is not only something for Germany — this is for all of us.’