Bundesbank’s Nagel Open to Another ECB Rate Cut, According to Reuters

Bundesbank President Signals Openness to Further ECB Rate Cuts

BERLIN – Joachim Nagel, President of the Bundesbank, has expressed potential support for another interest rate cut by the European Central Bank (ECB) during its upcoming meeting. He indicated that German economic growth in the latter half of the year is anticipated to be weaker than initially projected.

The ECB has already implemented two rate cuts this year from record highs, and markets are increasingly expecting additional policy easing, with adjustments in October and December now widely anticipated as inflationary pressures diminish more rapidly than policymakers had expected.

"I am certainly open to considering whether we could possibly make another interest rate cut," Nagel stated, remarking that the ECB’s interest rate policy has so far achieved the intended effect of reducing prices.

"The inflation trend is one of the good news stories. We are clearly approaching our target of 2%," he added.

In a separate statement, Nagel concurred with the German government’s updated forecast for the country’s economic output, which now reflects a contraction of 0.2% this year instead of the previously projected 0.3% growth.

Furthermore, he echoed the Chancellor’s concerns regarding potential EU tariffs on Chinese car imports, emphasizing that "tariffs and mutual protectionism cannot serve Europe’s interests," and advocating for constructive dialogue and negotiations with China.