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ECB Nagel says policy should stay cautious, but decisive if needed

EUR/USD was flat near 1.1424 after his comments, with the euro not reacting immediately.

Reported · Written up by our desk · Central Banks

ECB Governing Council Member and Deutsche Bundesbank President Joachim Nagel said the ECB should stay prepared to adjust monetary policy if needed, adding that the central bank should react with caution but act decisively when required, while maintaining a vigilant stance.

Nagel also pointed to recent geopolitical developments as a mix of hopes and disappointments, a theme that keeps the ECB’s options open in case shocks rekindle inflation pressures or create financial stress.

In currency markets, EUR/USD was trading flat around 1.1424 at the time of the report, after giving back earlier gains and showing no immediate reaction to his remarks.

The comments were characterized as moderately hawkish in tone, but with less impact than in prior appearances, limiting near term upside for the euro.

Latest closeEUR/USD 1.142 ▲0.2%

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