By
Reuters
Printed
January 17, 2025
The European Central Financial institution shouldn’t rush to decrease rates of interest as a result of inflation stays excessive and uncertainty nice, ECB policymaker Joachim Nagel mentioned in an interview printed on Friday.
“We should therefore not rush into anything on the path to monetary policy normalisation,” he mentioned.Nonetheless, Nagel mentioned there had been nothing unsuitable with the ECB discussing a much bigger, 50-basis-point price minimize at its final assembly in December, including: “That’s part of it.”
Nagel gave brief shrift to an election proposal by Christian Lindner, former German finance minister and chief of the pro-business Free Democratic Occasion (FDP), so as to add bitcoin to Bundesbank and ECB reserves.
“This worries me because it gives the impression that an asset is being given some kind of government seal of approval,” he mentioned. “A currency reserve must be safe, liquid and transparent. None of this applies to bitcoin.”
Nagel additionally mentioned international guidelines designed to make banks safer can be utilized “on both sides of the Atlantic” even after they had been watered down by the U.S. Federal Reserve and may even be scrapped beneath Trump’s incoming administration.
“I assume that Basel III will be finalised on both sides of the Atlantic,” he mentioned. “It is important that we in Europe speak with one voice.”
Earlier on Friday, the Financial institution of England mentioned it might delay its implementation of the foundations, which embody harder financial institution capital necessities, by one 12 months till January 2027.
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