ECB Governing Council member Joachim Nagel told German newspaper Handelsblatt, “I don’t expect stagflation at the moment, even though the fallout of the war will boost inflation rates and weaken economic growth.” He added that there are currently “no signs” of a wage-price spiral.
He said ECB’s current approach of tapering asset purchases while being non-committal on rate hike was a “good and balanced” approach. He said, “”I consider it very important that we don’t pre-commit in times of high uncertainty, but stay flexible.”
