ECB's Nagel sees 'cautious gliding flight' in interest rates after June

Record ID: 1819230

  • Title: ECB's Nagel sees 'cautious gliding flight' in interest rates after June
  • Date: 18th April 2024
  • Summary: WASHINGTON, D.C., USA (APRIL 18, 2024) (REUTERS) GERMAN BUNDESBANK PRESIDENT JOACHIM NAGEL AT JOINT PRESS CONFERENCE WITH GERMAN FINANCE MINISTER CHRISTIAN LINDNER (SOUNDBITE) (German) GERMAN BUNDESBANK PRESIDENT, JOACHIM NAGEL, SAYING: "So the discussion that goes beyond June, I think that's premature. It has proven to be very helpful that we analyse the data from session to session. If you want to imagine that interest rates go down in June and what happens afterwards, then I would characterise that as a cautious gliding flight. And at some point we will return to a cruising altitude. A return to zero or even negative interest rates is very unlikely from today's perspective." PRESS CONFERENCE (SOUNDBITE) (German) GERMAN FINANCE MINISTER, CHRISTIAN LINDNER, SAYING: "Those who do not succeed in taxing income properly at national level should not make recommendations to those who do, by suggesting property taxation, which does not fit at all. So insofar as we have appropriate taxation of income, we do not need property taxation in our country." NAGEL AND LINDNER AT PRESS CONFERENCE (SOUNDBITE) (German) GERMAN FINANCE MINISTER, CHRISTIAN LINDNER, SAYING: "As far as the global economic situation is concerned, the current World Economic Outlook at least contains the positive message that a soft landing is likely. The global recession has been averted and inflation is falling. However, we are not satisfied with the outlook, because even if there is a prospect of a soft landing, the global growth outlook is far too low. We are delivering less than we actually could and should. Especially when you consider the tasks I have just mentioned - combating poverty and climate change - which can only be achieved through new economic dynamism." NAGEL AND LINDNER AT PRESS CONFERENCE (SOUNDBITE) (German) GERMAN FINANCE MINISTER, CHRISTIAN LINDNER, SAYING: "The inflation trend in Europe and Germany is encouraging. If I may say so - with all due politeness and restraint - especially in comparison to the United States of America. In the German domestic political debate, many are taking the Inflation Reduction Act as a model. However, the Inflation Reduction Act has not succeeded in doing one thing in the United States of America, namely reducing inflation. On the contrary, by accepting high public deficits, prices have been fuelled by government subsidies." LINDNER SPEAKING (SOUNDBITE) (German) GERMAN FINANCE MINISTER, CHRISTIAN LINDNER, SAYING: "The recommendation of the International Monetary Fund is that we focus globally on structural reforms, that a new era of structural reforms is necessary. It has also regularly emphasised this to the German government on these occasions. This also applies to Germany itself. Crisis measures have already been phased out in our country. The IMF's recommendation to others is to follow this example." NAGEL AND LINDNER AT PRESS CONFERENCE
  • Embargoed: 2nd May 2024 15:20
  • Keywords: Brazil ECB Worldbank
  • Location: WASHINGTON D.C., USA
  • City: WASHINGTON D.C., USA
  • Country: US
  • Topics: Economic Events,North America
  • Reuters ID: LVA001613518042024RP1
  • Aspect Ratio: 16:9
  • Story Text: Bundesbank President Joachim Nagel is not particularly keen on discussing the ECB's stance following a possible first rate cut in June.
    "The discussion that goes beyond June, I think that's premature," Nagel said at a joint press conference with German Finance Minister Christian Lindner in Washington on Thursday (April 18).
    "If you want to imagine that interest rates go down in June and what happens afterwards, then I would characterise that as a cautious gliding flight," Nagel added.
    The European Central Bank made it clear on Thursday that an interest rate cut is coming in June but policymakers continued to differ on moves thereafter or how low interest rates can go before once again starting to stimulate the economy.
    Speaking alongside Nagel, German Finance Minister Lindner rejected Brazil's proposal to tax the super-rich, "we have an appropriate taxation of income," he said.
    Brazil, heading the presidency of the Group of Twenty (G20), is aiming to build international consensus on the taxation of wealth this year, and is pushing for a joint declaration at a meeting of G20 finance ministers and central bankers in July.
    (Production: Julio Cesar-Chavez, Lena Toepler, Daria Shamonova)
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