European Central Bank (ECB) Governing Council member Joachim Nagel signaled a more cautious stance on interest rates during comments made on Sunday, suggesting the central bank now has room to pause and assess the economic landscape. According to a Reuters report, Nagel indicated that monetary policy is no longer restrictive and has reached a neutral level.
Key Quotes:
“We are no longer restrictive.”
“I believe that we can now take the time to look at the situation first.”
“We now have maximum flexibility.”
Nagel’s remarks suggest the ECB is likely to adopt a wait-and-see approach in the near term, following its recent rate cut and amid persistent uncertainty in global markets.
Market Reaction:
In immediate response, the euro gained modest ground. At the time of writing, the EUR/USD pair was trading 0.17% higher on the day at 1.1414.
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