ECB’s Nagel Says Rates Well-Placed as Inflation Threat Recedes

European Central Bank Governing Council member Joachim Nagel said current euro-area interest rates are "at a very good level," suggesting no immediate need for further tightening or easing. Speaking on 12 August, the Bundesbank president added that the ECB remains able to "react flexibly if necessary." Nagel also remarked that inflation is no longer a major challenge for policymakers, indicating confidence that price pressures have diminished sufficiently after the central bank’s earlier rate-hiking cycle. Nevertheless, he cautioned that uncertainty linked to global tariffs has decreased but not disappeared, leaving the ECB alert to potential external shocks.