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11/28/2023, 9:57 AM (Source: TeleTrader)
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ECB's Nagel: Balance sheet must be reduced 'significantly'

European Central Bank Governing Council member and Bundesbank President Joachim Nagel stressed on Tuesday that the ECB's balance sheet must "shrink further significantly."

Speaking in Cyprus, Nagel also reaffirmed that discussing the potential easing of monetary policy "would be premature," as the "main effect of the policy tightening on inflation is yet to unfold. He added that although the inflation outlook might be "encouraging," this doesn't necessarily mean that the ECB is done with its current interest rate hiking cycle.

The policymaker cautioned that should the inflation outlook deteriorate, another rate increase could be on the horizon.

Baha Breaking News (BBN) / AY