EURO: ECB Should Wait to Cut Rates Further, Says Bundesbank’s Nagel
The Bundesbank President Joachim Nagel said First rate cut from ECB since Last 5 years is more caution in the market. There are more uncertainties in the Future, So Data dependent rate cuts are welcome one, Still Rates are not peak as per my view, Still enough space to go higher, but data has to support for rate hike, and data dependent rate cuts are useful for Euro economy in the current situation.
EURAUD is moving in box pattern and market has fallen from the resistance area of the pattern
The president of the Bundesbank, Joachim Nagel, cautioned that the European Central Bank (ECB) should proceed with prudence following its first interest-rate cut in five years.
In a speech delivered in Leipzig on Monday, Nagel highlighted the persisting high uncertainty surrounding future economic and price developments. He emphasized, “I don’t see us on a mountain summit that we will inevitably descend. Rather, I see us on a ridge where we still have to find the right point for the further descent.”
Nagel underscored that the ECB had made it clear during last week’s policy meeting that its rate decisions would be contingent on data and determined on a meeting-by-meeting basis.
EURO: ECB’s Nagel Urges Caution on Future Rate Moves
Bundesbank President Joachim Nagel observed that the European Central Bank’s (ECB) inaugural rate reduction in five years signals a heightened atmosphere of prudence within the market. In light of numerous uncertainties looming over the horizon, Nagel advocated for the adoption of a strategy reliant on data-driven rate alterations.
EURCAD is moving in Ascending channel and market has reached higher low area of the channel
According to Nagel’s assessment, despite the recent decrease in rates, they have not yet reached their zenith. He posited that there remains substantial room for rates to ascend, provided that empirical evidence supports such a move. Nagel stressed the significance of rate adjustments guided by data, asserting their advantageous impact on the Eurozone economy given the current state of affairs.
European Central Bank (ECB) policymaker and Bundesbank Chief Joachim Nagel cautioned on Monday that caution should be exercised regarding future rate moves.
Expanding on his remarks, Nagel stated that interest rates are currently situated on a mountain ridge rather than at a peak. He emphasized the need to determine the appropriate point for further rate decreases.
Nagel reiterated that uncertainty regarding future economic and price trends remains high.
EURO: Nagel: Full Rate Descent Timing Not Optimal Yet
Bundesbank President Joachim Nagel remarked that the European Central Bank’s (ECB) first rate cut in five years reflects a heightened sense of caution in the market. With numerous uncertainties looming over the future, Nagel endorsed the approach of data-dependent rate adjustments.
EURNZD is moving in Descending channel and market has fallen from the lower high area of the channel
According to Nagel, despite the recent rate cut, interest rates have not reached their peak. He believes there is still ample room for rates to increase, contingent upon supportive data. Nagel underscored the importance of data-driven rate adjustments, stating that such measures are beneficial for the Eurozone economy given the prevailing circumstances.
Joachim Nagel, President of the Deutsche Bundesbank and member of the European Central Bank’s Governing Council, asserted on Monday that the opportune moment for the ECB to execute a comprehensive rate reduction has yet to materialize.
Speaking at the change of office ceremony at the headquarters in Saxony and Thuringia, Nagel emphasized the imperative of maintaining caution amidst substantial uncertainty surrounding forthcoming economic and price dynamics.
Nagel clarified that despite the recent 25 basis points reduction, the ECB has not initiated a comprehensive lowering of rates from their peak. He likened the current situation to being situated not atop a mountain peak, but rather on a ridge, where determining the optimal point for further descent remains a priority.
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