ECB chiefs insist it is too early to call for interest rate reductions

Financial markets are betting on rate cuts as soon as April

German Central Bank head Joachim Nagel.

The European Central Bank isn’t yet at a point where it should consider reducing borrowing costs, according to Bundesbank president Joachim Nagel. 

“It would be premature to lower interest rates soon or to speculate about such steps,” the German central banker said. “It is not just the level of interest rates that matters for the stance, but also expectations about the future path of interest rates. The main effect of the policy tightening on inflation is yet to unfold,” he said.