Euro Zone Inflation Fails to Meet ECB Expectations, Warns Bundesbank Chief

Wednesday, 18 September 2024, 04:13

Reuters highlights that Euro zone inflation is still not at desired levels for the ECB. Bundesbank President Joachim Nagel emphasizes the need for high interest rates to combat persistent price pressures. As markets speculate on future rate adjustments, clarity remains elusive.
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Euro Zone Inflation Fails to Meet ECB Expectations, Warns Bundesbank Chief

Euro Zone Inflation Remains Stubborn

FRANKFURT (Reuters) - Euro zone inflation is still not as low as the European Central Bank (ECB) desires, leading to a call for sufficiently high interest rates to address ongoing price pressures, according to Bundesbank President Joachim Nagel. This reiteration of the ECB's stance comes as inflation metrics continue to disappoint.

Market Speculations and Future Rate Cuts

The ECB cut rates for the second time this year on Thursday, with market speculation centered on the timing of future adjustments. Many investors are betting on December for the next move, with some also considering an additional cut as early as October. Nagel, unlike some of his colleagues, has not closed the door on December; however, he acknowledges that hurdles towards achieving lower inflation remain significant.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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