Emphasizing Gradualism in Monetary Policy

Joachim Nagel, a prominent member of the European Central Bank (ECB) Governing Council and President of Deutsche Bundesbank, highlighted the importance of a gradual approach in monetary policy adjustments. Speaking at the London School of Economics and Political Science, Nagel underscored the necessity of caution as the ECB nears the neutral rate.

Data-Driven Decisions

"The closer we get to the neutral rate, the more appropriate it becomes to take a gradual approach," Nagel stated. He emphasized the success of the ECB's data-dependent strategy, advocating for a steady, meeting-by-meeting approach rather than hastening decisions in the face of uncertainty.

"There is no reason to act hastily in the present uncertain environment. The data will tell us where we need to go," he added, reinforcing the bank's commitment to informed, deliberate policy adjustments.