Nagle highlights ECB flexibility against inflation
Joachim Nagel, a member of the European Central Bank Governing Council and the President of the German Central Bank, emphasized that the bank must remain prepared for various inflation scenarios, especially given the ongoing geopolitical tensions and their impact on energy prices. He pointed out that the resumption of energy flows and the stability of the Strait of Hormuz could help ease inflationary pressures, but any new escalation could lead to higher oil and gas prices. He also confirmed that the inflation rate remains close to the bank’s 2% target, and that economic growth in the Eurozone is displaying greater resilience than expected, with forecasts predicting around 1% growth in Germany this year. He stressed that monetary policy decisions will continue to be data-driven, amidst persistent upside risks to inflation.
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