European Central Bank Governing Council member and Deutsche Bundesbank President
Joachim Nagel said the euro-zone economy has moved between the ECB’s baseline
and adverse scenarios due to the Iran war. Speaking at the IMF spring meetings,
he said the situation is “very opaque” and policy must retain “full
optionality.” He warned inflation is “well anchored” but fragile, with rising
energy costs complicating rate decisions. ECB President Christine Lagarde said
policymakers must stay “completely agile,” while investors expect two rate hikes
this year.
