ECB's Nagel: Need to be convinced inflation is heading back to target before cutting rates
Source Fxstreet
"Before cutting interest rates, we must be convinced based on data that inflation will actually reach our target in a timely and sustained manner," European Central Bank (ECB) policymaker and Bundesbank Chief Joachim Nagel said on Tuesday.
"If the favourable inflation outlook from March is confirmed in the June projections and incoming data supports this outlook, we can consider a rate cut," Nagel further elaborated.
Market reaction
EUR/USD showed no immediate reaction to these comments and was last seen trading modestly higher on the day near 1.0670.
Disclaimer: For information purposes only. Past performance is not indicative of future results.
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The Pound Sterling (GBP) trades lower against its major currency peers, slides 0.3% to near 1.3360 against the US Dollar (USD) during the European trading session on Tuesday.
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