European Central Bank Governing Council member Joachim Nagel said that while inflation will remain sticky, the current path for interest rates remains clear.
Speaking to CNBC’s Karen Tso at the IMF and World Bank annual meetings in Washington on Wednesday, the Deutsche Bundesbank president said: “I do not see any reason to change anything if there is not something new coming, and I do not see where it might come from.”
In an exclusive interview, Nagel said global tariff tensions had created a “lose-lose situation for everyone,” but he cited the recent strength of the German economy in particular for providing optimism in Europe.
German economic institutes have recently revised up their growth forcasts for 2025, while Goldman Sachs predicts the economy will continue to expand 1.4% in 2026 and 1.8% in 2027.
Nagel flagged private credit as an area of concern, saying the size of the market and “spillover from less regulated market participants” was something regulators would need to monitor closely.
