Bundesbank President Joachim Nagel highlighted the critical need for “reliable data on wage developments” before commencing rate cuts. With ECB’s updated economic projections on the horizon next week, Nagel described the forthcoming report as an “important milestone”.
Nagel took a moment to reflect on the successes achieved through current policy in reducing inflation. However, he was quick to caution against complacency, emphasizing “we can’t make any mistakes in the final stretch of the journey.”
His warning against premature rate cuts was stark, labeling such a move as “fatal.” Nagel’s concern is that an ill-timed easing of monetary policy could lead to a resurgence of inflation, thereby damaging the ECB’s credibility and triggering financial market instability.
![Pinterest](https://pinterest.com/pin/create/button/?url=https://www.actionforex.com/live-comments/541725-ecbs-nagel-eyes-next-weeks-economic-projections-as-important-policy-milestone/&media=https://www.actionforex.com/wp-content/uploads/2018/04/f-ecb13.jpg&description=Bundesbank President Joachim Nagel highlighted the critical need for "reliable data on wage developments" before commencing rate cuts. With ECB's updated economic projections on the horizon next week, Nagel described the forthcoming report as an "important milestone".){kind=link}