Nagel Says ECB Must Stay Flexible as Inflation Risks Persist

The European Central Bank must remain ready to respond to different inflation scenarios as geopolitical developments in the Middle East continue to cloud the outlook for prices, Joachim Nagel said.

Nagel, a member of the ECB’s Governing Council and president of Germany’s Bundesbank, stressed the importance of flexibility in navigating those risks.

His remarks highlighted uncertainty over the future path of inflation, with developments in the region remaining a factor in the price outlook.

The emphasis was on keeping the central bank prepared for a range of possible outcomes, rather than committing to a single inflation scenario.