President of the Bundesbank Joachim Nagel speaks during a press conference with German Minister of Finance Lars Klingbeil at the end of the annual meeting of the International Monetary Fund (IMF) and the World Bank. Kay Nietfeld/dpa
The head of Germany’s central bank, Joachim Nagel, signalled on Friday that the Bundesbank’s key interest rates will remain stable ahead of the European Central Bank’s next meeting.
“In terms of monetary policy, I see no need for action at present,” Nagel said on the fringes of the International Monetary Fund’s annual meeting in Washington.
Inflation rates in the eurozone have recently levelled off at around 2%, even if the September figure for Germany was slightly higher.
“But overall, this does not change the rather favourable picture when it comes to inflation,” said Nagel.
Nagel said however he was aware of the impact of so-called supermarket inflation: The fact that food prices remain stubbornly high. “That’s why we must remain vigilant,” he said.
In the last several meetings, the ECB has left the key interest rate in the eurozone unchanged at 2%, against the backdrop of the uncertain geopolitical environment, including the trade tariff dispute with the United States.
When it came to German money reserves deposited in the United States in the form of gold, Nagel said he saw no need to sell, despite the high price of gold.
“Gold remains an anchor of confidence and therefore the Bundesbank’s position will not change, even if the gold price has developed as it has,” he said.
German Minister of Finance Lars Klingbeil (R) and President of the Bundesbank Joachim Nagel speak during a press conference at the end of the annual meeting of the International Monetary Fund (IMF) and the World Bank. Kay Nietfeld/dpa