Gate News message, April 16 — Joachim Nagel, member of the European Central Bank’s Governing Council and head of Germany’s Bundesbank, stated Thursday that policymakers should not provide forward guidance on future interest rates and must preserve policy flexibility. Speaking at the International Monetary Fund’s spring meeting, Nagel noted that authorities lack sufficient information to determine whether surging energy prices will sustain inflation at elevated levels over the long term, a development that may require policy response.
The Middle East conflict between the U.S. and Iran has weakened Germany’s economic momentum, Nagel warned. Germany’s economic growth forecast for 2026 has been lowered by approximately 0.3 percentage points from the Bundesbank’s prior estimate of 0.6%, reducing the revised outlook to 0.3%. German Finance Minister Lars Klingbeil also cautioned that the Middle East situation would have a “major impact” on Germany’s economy, potentially disrupting the recovery that had just begun after years of stagnation.
The ECB will hold its rate-setting meeting in two weeks. Market participants widely expect the deposit rate to remain unchanged, though policymakers have not ruled out a rate increase. Nagel cautioned that while markets currently hold a relatively optimistic view of the Middle East situation, expecting conflict to ease and energy prices to decline, such expectations may not materialize. He emphasized the ECB’s responsibility to ensure financial stability should circumstances change.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Fed Likely to Hold Rates in April at 99.5% Probability, CME Data Shows
The Federal Reserve is highly likely to keep interest rates steady in April, with a 99.5% probability. Looking ahead to June, there's a 94.1% chance of maintaining rates, a 0.5% chance of an increase, and a 5.4% chance of a cut.
GateNews14h ago
Fed Governor Waller Backs Holding Rates for Rest of 2026 If Inflation Remains Elevated
Fed Governor Christopher Waller expressed his readiness to maintain interest rates steady until 2026 if inflation remains a significant concern, despite a stagnant labor market. He warned about prolonged inflation and potential job losses amid ongoing Fed leadership discussions.
GateNews16h ago
TradFi Fall Alert: USDKRW (US Dollar vs South Korean won) Falls Over 1%
Gate News: According to the latest Gate TradFi data, USDKRW (US Dollar vs South Korean won) has dropped by 1% in a short period. Current volatility is significantly higher than recent averages, indicating increased market
GateNews19h ago
U.S. 5-Year Treasury Yields Drop 10 Basis Points
Gate News message, April 17 — U.S. 5-year Treasury yields (benchmark measure of medium-term U.S. government borrowing rates) fell 10 basis points intraday.
GateNews22h ago
U.S. Dollar Spot Index Erases All Gains Since Middle East War Outbreak
Gate News message, April 17 — The U.S. Dollar Spot Index has wiped out all gains accumulated since the outbreak of the Middle East conflict.
GateNews04-17 13:11
Rate Swap Market Signals Dovish Shift, Pricing in 15 Basis Points of Fed Rate Cuts by December
Gate News message, April 17 — The rate swap market is signaling a dovish shift, with current pricing reflecting expectations for 15 basis points of Federal Reserve rate cuts by December.
GateNews04-17 13:01
