Once interest rates reach their peak, or terminal level in
central bank parlance, they need to stay there for some time to
ensure disinflation, Nagel told a lecture in Edinburgh.
Nagel declined to say if he supported a rate hike as soon as
the ECB's next meeting in early May but said the 3% deposit rate
is not particularly high when compared to an inflation rate that
was still at 8.5% last month.
(Reporting by Andy Bruce; Writing by Balazs Koranyi;
Editing by Andrew Cawthorne)
EDINBURGH, March 24 (Reuters) - The European Central
Bank will fulfill its 2% inflation mandate but monetary policy
must be stubbornly tight to get the job done, Bundesbank
President Joachim Nagel said on Friday.
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