Bundesbank President Joachim Nagel has issued a warning to investors and analysts anticipating an early interest rate cut by ECB.
In an interview, Nagel emphasized the importance of maintaining the current interest rate levels to ensure the effective management of inflation. “We must initially remain at the current interest rate plateau so that monetary policy can fully develop its inflation-dampening effect,” he stated.
Nagel’s cautionary words to those speculating on an imminent rate cut were stark: “Be careful, some people have already miscalculated that.” However, Nagel did acknowledge that interest rates have likely reached their peak, suggesting that while an immediate rate reduction may not be on the horizon, the period of aggressive rate hikes should have come to an end.
