ECB/Nagel: Too early to talk about interest rate cuts

Joachim Nagel, a member of the European Central Bank’s Governing Council and president of the Bundesbank, said interest rates were at their peak but it was too early to talk about cutting rates. Joachim Nagel, a member of the European Central Bank’s Governing Council and president of the Bundesbank, said the European Central Bank had completed its interest rate cycle but that it was too early to think about lower borrowing costs. “After 10 rate hikes, we are likely to reach a peak in interest rates. In my view, it is too early to think about when we could cut rates,” Nagel told German broadcaster ZDF on Friday. “We will decide what will happen later in the year based on the data,” Nagel said, adding that “inflation is still very high” at the moment. The institution’s latest forecasts, published early Friday, foresee inflation slowing from 6.1% this year to 2.7% in 2024. Still, “we still have a way to go” before rates return to the ECB’s 2% target, Nagel said.