In an interview on Wednesday, European Central Bank policymaker and Bundesbank Chief Joachim Nagel said that price pressures in the Eurozone could continue for some time, per Reuters.
“It’s not completely clear if the inflation rate will reach 2% target next year and stay at this level,” Nagel added and noted that he expects a “slight growth” in German economy in 2024.
These comments don’t seem to be impacting the Euro’s valuation in a noticeable way. At the time of press, EUR\/USD was up 0.15% on the day at 1.0635.
\u201cWe are observing a disinflationary process that is moving according to our expectations,\u201d Christine Lagarde told CNBC\u2019s Sara Eisen on the sidelines of the IMF Spring Meetings. \u201cWe just need to build a bit more confidence in this disinflationary process but if it moves according to our expectations, if we don\u2019t have a major shock in development, we are heading towards a moment where we have to moderate the restrictive monetary policy,\u201d Lagarde said.
Lagarde\u2019s comments come shortly after the European Central Bank gave its clearest indication to date that it could start cutting interest rates during its June meeting. According to Lagarde, European Central Bank President Christine remains on course to cut interest rates in the near term, subject to any major shocks.
Lagarde said the ECB would monitor oil prices \u201cvery closely\u201d amid elevated fears of a spillover conflict in the Middle East. However, since Iran\u2019s unprecedented air attack on Israel over the weekend, she said the oil price reaction had been \u201crelatively moderate.\u201d
Her comments come shortly after the central bank gave its clearest indication to date that it could start cutting interest rates during its June meeting.
In a shift from previous language, the ECB said \u201cit would be appropriate\u201d to lower its 4% deposit rate if underlying price pressures and the impact of previous rate hikes were to boost confidence that inflation is falling back toward its 2% target \u201cin a sustained manner.\u201d
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In an interview on Wednesday, European Central Bank policymaker and Bundesbank Chief Joachim Nagel said that price pressures in the Eurozone could continue for some time, per Reuters.“It’s not completely clear if the inflation rate will reach 2% target next year and stay at this level,” Nagel added and noted that he expects a “slight …<\/p>\n","protected":false},"author":13,"featured_media":71073,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[6827,49,37,36],"tags":[8310,6923,8635,10272],"class_list":["post-99991","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-daily-economic-reports","category-economic-reports","category-forex-markets","category-market-updates","tag-christine-lagarde","tag-ecb","tag-interest-rate-policy","tag-joachim-nagel"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/99991","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=99991"}],"version-history":[{"count":2,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/99991\/revisions"}],"predecessor-version":[{"id":100012,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/99991\/revisions\/100012"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/71073"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=99991"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=99991"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=99991"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}