According to Jinshi Data, the European Central Bank's board member and German central bank president Nagel said that the European Central Bank must remain cautious and not rush to lower key interest rates. Nagel pointed out that the tightening of the job market and economic growth may delay the eurozone's inflation rate from returning to the 2% target.
Nagel stressed that it cannot be taken for granted that prices will stabilize in time, so caution is needed and policy rates must not be lowered too quickly. The ECB cut its key interest rate in June and investors expect policymakers to cut rates again at their meeting on September 12.
German inflation returned to the European Central Bank's target in August, data from the German statistics office showed, but the German economy shrank in the three months to June and recent surveys pointed to continued weakness.
