Bundesbank’s Nagel says open to another ECB rate cut Reuters

BERLIN (Reuters) – Bundesbank President Joachim Nagel is open to considering a further cut in the European Central Bank’s interest rate at its meeting next week, he told Table Media, adding that German economic growth in the second half would be weaker than expected.

The ECB has already cut interest rates twice this year from record highs, and markets are now expecting even faster policy easing, with moves in October and December fully priced as inflationary pressures ease faster than expected decision makers.

“I’m certainly open to thinking about whether we could do another rate cut,” Nagel told Table Media, noting that the ECB’s interest rate policy has had the desired price dampening effect so far.

“The inflation trend is one of the good news. We are clearly approaching our 2% target.

Separately, the head of the Bundesbank said he agreed with the German government’s revision of its forecast for output in Europe’s largest economy this year to a contraction of 0.2 percent from a previous forecast of growth of 0, 3%

He also echoed the chancellor’s skepticism about EU tariffs against Chinese car imports.

“Tariffs and mutual protectionism – this cannot be in Europe’s interest. I am clearly in favor of talks and negotiations with China,” he said.