Interest charges
Bundesbank boss: Inflation wave is ebbing
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Should interest rates in the euro area be lowered further to stimulate the economy? The head of the Bundesbank urges caution.
Bundesbank boss Joachim Nagel expects inflation in the euro area to fall further next year. Nevertheless, on the sidelines of the annual meeting of the International Economic Fund in Washington, he warned that “we are now thinking too hastily about the further course of interest rate cuts.”
A week ago, the European Central Bank cut key interest rates in the euro area for the third time this year. Further steps should now be decided from meeting to meeting, said Nagel. “In my opinion, the speculation about what interest rate steps could turn out doesn’t help.”
dpa
Source: Stern