Published by Global Banking & Finance Review®
Posted on May 22, 2025
1 min readLast updated: January 23, 2026
Add as preferred source on GoogleECB's Joachim Nagel advises caution in monetary policy as euro zone borrowing costs no longer hinder growth, with deposit rates at 2.25%.
BANFF, Alberta (Reuters) -Borrowing costs in the euro zone are no longer acting as a drag on economic growth, European Central Bank policymaker Joachim Nagel said on Thursday, calling for caution in future monetary policy decisions.
"After seven interest rate cuts, our deposit rate stands at 2.25%, a level that can certainly no longer be described as restrictive," the Bundesbank's president told reporters on the sidelines of a G7 meeting in Canada.
"Given the continuing high level of uncertainty, we should therefore remain cautious in monetary policy."
(Reporting By Christian Kraemer; Writing by Francesco Canepa in Frankfurt; Editing by Kirsten Donovan)
Nagel stated that borrowing costs in the euro zone are no longer acting as a drag on economic growth.
The current deposit rate stands at 2.25%, which Nagel believes can no longer be described as restrictive.
He advised that given the continuing high level of uncertainty, caution should be maintained in monetary policy.
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