ECB’s Nagel cautions against too hasty action on rates

WASHINGTON (Reuters) – The European Central Bank should not be too hasty in adjusting policy, Bundesbank President Joachim Nagel said on Saturday after some of his colleagues made the case in recent days for faster and deeper rate cuts.

“We shouldn’t be too hasty,” Nagel said in a panel discussion in Washington. “We should do what is necessary based on new data.”

He argued that the U.S. election, new inflation data, fresh economic projections and a slew of other indicators would guide the ECB’s decision in December.

Markets have fully priced a 25 basis point rate cut for December, the fourth move this year, but investors also see a 40% chance of a bigger, 50 basis point move, partly in response to move dovish comments this week.