ECB’s Nagel Says He’s Open to Consider October Rate Cut

(Bloomberg) -- Bundesbank Chief Joachim Nagel said he’s willing to talk about an interest-rate cut at next week’s European Central Bank decision.

“I want to wait until the actual meeting, but I am certainly open to considering the possibility of taking another interest rate step,” he told the Table Today podcast in an episode published Tuesday.

Nagel is considered one of the most hawkish members of the ECB Governing Council, so his willingness to discuss about a move at the Oct. 16-17 policy gathering makes a reduction in borrowing costs even more likely. Markets and economists already were betting on such a step.

“The latest figures were very encouraging — we are clearly approaching our target of 2%,” he said of euro-area inflation, which in September fell below the ECB’s goal for the first time since 2021. “The inflation trend certainly is a bit of good news.”

However, “core inflation is still proving to be a little more robust,” Nagel said.