Deutsche Bundesbank Warns Against Premature Rate Cuts and Urges Strict Fiscal Discipline to Combat Core Inflation
Deutsche Bundesbank President Joachim Nagel has warned against premature monetary easing by the European Central Bank, emphasizing that interest rates must remain restrictive to anchor long-term price stability. Speaking in Frankfurt, Nagel noted that persistent inflation pressures in the services sector require continued vigilance, while simultaneously calling on the federal government in Berlin to strengthen structural spending consolidation and enforce strict adherence to national debt brake rules.