ECB's Nagel and Escriva insist on weighing rate decision in June

Many European Central Bank (ECB) officials have stated the need to be cautious in determining the future course of monetary policy in the region due to Donald Trump's uncertain tariff policy. Germany's Joachim Nagel and Spain's Jose Luis Escriva once again emphasized this point in a joint interview with Sueddeutsche Zeitung and El Mundo.

Both experts urge their colleagues to analyze all available data before making the next interest rate decision. From the German official’s perspective, the European regulator should not rashly react to any statements or actions of the United States, because the next day the situation may change completely. Each step should be weighed and justified, notes Nagel.

Markets are anticipating the eighth consecutive rate cut in Europe in June. New quarterly forecasts will also be presented in early summer. According to Bloomberg, experts predict a slowdown in economic growth and inflation in the European Union.

Following Nagel's statement, the rise in consumer prices this year will meet the ECB's target of 2%. In April, the indicator was at 2.2%.