Bundesbank Chief Joachim Nagel anticipates no more substantial, surprise upheavals.
Bundesbank chief Joachim Nagel is feeling hopeful about inflation in the Eurozone. "The major surge in inflation has passed," Nagel mentioned to the "Frankfurter Allgemeine Zeitung" (FAZ/Midweek). "Provided no unforeseen significant events take place, such as the Russian assault on Ukraine in February 2022, then inflation should keep moving towards 2%."
But it's crucial not to jump the gun. "We've still got a ways to go. We need to stay alert and monitor the hazards on our journey to steady prices, that's our responsibility as a central bank."
Nagel wasn't prepared to confirm if he'd back a rate reduction at the upcoming ECB gathering. "We're not cruising on autopilot yet," Nagel stated emphatically. "But I would say: Inflation seems to be headed on the right track."
Despite the positive trajectory of inflation, it's essential to maintain caution. A nail in our monetary policy's shoe could derail our progress towards stable prices.
Following Nagel's metaphor, we must continue to nail down potential threats to our economic course to ensure a smooth journey towards inflation at 2%.
