ECB’s Nagel: Rate Cut Decisions Reviewed at Every Meeting; No Autopilot

9 July 2024

By Isabel Teles – FRANKFURT (Econostream) – European Central Bank Governing Council member Joachim Nagel on Tuesday said that the ECB’s decisions on interest rate cuts were up for a data-based discussion at every meeting and not taken automatically.

In an interview with German daily Der Tagesspiegel, Nagel, who heads the German Bundesbank, said, ‘We will therefore decide depending on the data available. And that means we review our course at every meeting.’

‘We do not make interest rate cuts on autopilot’, he said.

Even though inflation had been falling, the ECB remained cautious, he said, with core inflation still ‘relatively high’.

'[W]e expect it [inflation] to reach our target of 2% by the end of 2025 at the latest’, he said.