The European Central Bank (ECB) Governing Council member Joachim Nagel said that inflation that’s headed toward the ECB’s target will allow for more interest-rate cuts, but officials mustn’t rush, per Bloomberg.  

Key quotes

Since inflation in services should gradually decline as wage pressures decrease, the point at which we can expect a sustained return to the 2% mark is approaching. 

It is important to remain cautious and to loosen monetary policy only gradually and not too quickly.  

It would therefore be too late to wait until the targeted inflation rate has been reached to ease policy.  

Growth likely to stagnate in Q4.

Germany falling behind eurozone average

Slower wage growth to help service prices to moderate.

Trump tariffs boosting eurozone inflation a real risk.