ECB/Nagel: We are on a good path to reach the inflation target
Joachim Nagel, a hawkish member of the European Central Bank (ECB), backed the ECB’s latest rate cut on Friday, saying inflation in the Eurozone is heading in the right direction, including a core measure that eliminates volatile prices.
“We assume that core inflation will improve, especially with the wage trend in the Eurozone declining,” Nagel told German radio Deutschlandfunk. Here, too, things are moving in the right direction.”
Stating that they foresee inflation to reach 2 percent by the end of next year, Nagel said, “We are on a good path to reach the inflation target.”
European Central Bank President Christine Lagarde stated at a press conference in Frankfurt after the ECB interest rate decision that the risks to economic growth are downside, for example, a weaker world economy or a decline in demand for Eurozone exports due to escalating trade tensions between major economies could negatively affect regional growth.
Lagarde said that financing costs remained restrictive and credit growth remained low in the shadow of weak demand.
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