ECB’s Nagel: ‘The Bar is High’ for Another Rate Cut

22 August 2025

ECB’s Nagel: ‘The Bar is High’ for Another Rate Cut
Joachim Nagel, president of the German Bundesbank, at the European Central Bank Forum on Central Banking in Sintra, Portugal on July 2, 2024. Photo by the ECB.

By Marta Vilar – MADRID (Econostream) – European Central Bank Governing Council member Joachim Nagel said on Friday that the bar for another interest rate cut was high.

In an interview with Bloomberg TV on the margins of the Jackson Hole Economic Symposium, Nagel, who heads the Deutsche Bundesbank, said that he did not ‘see so many arguments that bring me to the point that we should do more here.’

Inflation was at target and the situation was that of an ‘equilibrium’, he said.

‘It’s definitely not time for complacency’, he said. ‘[S]ervices inflation is still very high, it’s about 3%, so we have to have this wait-and-see attitude.’

The ECB would take a decision in September bearing in mind the incoming data and new macroeconomic projections, he said.

‘I think the bar is high, so it takes a lot to convince me to change the monetary policy’, he said.

 

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