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German central bank chief Nagel: we can do a lot more to calm financial markets - Finance news and analysis from Global Banking & Finance Review
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German central bank chief Nagel: we can do a lot more to calm financial markets

Published by Global Banking & Finance Review

Posted on May 18, 2026

1 min read

· Last updated: May 18, 2026

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Finance Banking Markets Central Banks Inflation

German Central Bank Head: More Can Be Done to Calm Volatile Financial Markets

Central Bankers Address Market Volatility Amid Global Economic Concerns

Joachim Nagel’s Statement on Financial Markets

PARIS, May 18 (Reuters) - The head of the German Central Bank Joachim Nagel said on Monday that central bankers can do "a lot more" to calm the financial markets and give them a positive momentum.

G7 Finance Ministers Meeting in Paris

Key Participants and Agenda

Nagel made the comments as he arrived for a meeting of Group of Seven finance ministers and central nakers in Paris.

Global Bond Market Reactions

Impact of Rising Energy Prices

Inflation Fears and Rate Hike Speculation

Bonds from Tokyo to New York extended losses on Monday as rising energy prices from the ongoing Middle East war fanned inflation fears and stoked investor wagers on rate hikes from global central banks. [MKTS/GLOB]

(Reporting by Dominique Vidalon)

Key Takeaways

  • Nagel emphasized that central banks can still deploy more tools to calm markets, signaling willingness for further action amid rising inflation pressures linked to energy cost spikes and geopolitical tensions.
  • Markets from Tokyo to New York extended bond losses on May 18 as energy‑price shocks from the Middle East conflict heightened inflation fears and pushed investors to price in additional global rate hikes.
  • Nagel’s remarks align with his broader stance of maintaining flexibility amid uncertainty — previously advocating for central banks to remain agile and ready to respond swiftly to inflation signals, including those driven by energy shocks caused by geopolitical events (bloomberg.com).

References

Frequently Asked Questions

Who is Joachim Nagel?
Joachim Nagel is the head of the German Central Bank.
What did Joachim Nagel say about calming financial markets?
Nagel stated that central bankers can do a lot more to calm financial markets and boost positive momentum.
Why are financial markets volatile currently?
Markets are volatile due to rising energy prices from the ongoing Middle East conflict, which has increased inflation fears and speculation on global rate hikes.
Where did Joachim Nagel make his statement?
He made his comments upon arriving at a Group of Seven finance ministers and central bankers meeting in Paris.

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