Bundesbank head, and thus a key member of the European Central Bank Governing Council, Joakim Nagel spoke with reporters on Thursday in Washington. What he said on the prospects for the May ECB meeting is not a surprise, but just to note:
- further to go on tightening monetary policy with core inflation remaining very high
- expects the cycle of hikes to continue at the May ECB meeting
- important to watch for signs of loan growth slowing in the wake of the recent financial stress, but there’s no danger of a systemic banking crisis unfolding
- too early to speculate on rate cuts
Next European Central Bank policy meeting is May 15:
