The post ECB’s Nagel: The great wave of inflation is over appeared on BitcoinEthereumNews.com.

European Central Bank policymaker Joachim Nagel said on Tuesday that “the great wave of inflation is over”, adding he will not decide whether to vote to cut rates in September until next week, per Reuters. Key quotes I really won’t make a decision until the ECB Governing Council meeting next week, when I will have a complete overview of all the data. Inflation was on the right track. We shouldn’t prematurely burst into cheers and pat ourselves on the back. We must remain vigilant and keep an eye on the risks on the way back to stable prices. Market reaction At the time of press, the EUR/USD pair was up 0.04% on the day at 1.1048. ECB FAQs The European Central Bank (ECB) in Frankfurt, Germany, is the reserve bank for the Eurozone. The ECB sets interest rates and manages monetary policy for the region. The ECB primary mandate is to maintain price stability, which means keeping inflation at around 2%. Its primary tool for achieving this is by raising or lowering interest rates. Relatively high interest rates will usually result in a stronger Euro and vice versa. The ECB Governing Council makes monetary policy decisions at meetings held eight times a year. Decisions are made by heads of the Eurozone national banks and six permanent members, including the President of the ECB, Christine Lagarde. In extreme situations, the European Central Bank can enact a policy tool called Quantitative Easing. QE is the process by which the ECB prints Euros and uses them to buy assets – usually government or corporate bonds – from banks and other financial institutions. QE usually results in a weaker Euro. QE is a last resort when simply lowering interest rates is unlikely to achieve the objective of price stability. The ECB used it during the Great Financial…

---

Filed under: News - @ September 4, 2024 12:18 am