ECB's Confidence in Inflation Target

European Central Bank (ECB) Governing Council member and Deutsche Bundesbank President Joachim Nagel shared his optimism during his speech at The New Economy Forum (NEF) in Madrid, stating, "there is a good probability we will get to 2% inflation target."

June's Rate Decision Hangs on Data

When asked about the ECB's recent interest rate reduction, Nagel highlighted that "June's rate decision will depend on the incoming data," emphasizing the bank's data-driven approach to monetary policy.

Market Volatility: The New Standard

Nagel also addressed the current market volatility, suggesting it may become the new "standard" in light of US President Donald Trump's trade policies. He admitted the central bank's limitations in predicting how tariffs will precisely affect inflation and economic performance.