ECB official: Inflation falling below 2% is not a cause for concern

Joachim Nagel, a member of the European Central Bank’s Governing Council, said that the temporary decline in inflation in the eurozone below 2% is not a cause for concern, adding that the bank can wait before raising interest rates.

In an interview with the German newspaper Frankfurter Allgemeine Zeitung, he said, “The strategy review reaffirmed the appropriateness of the inflation target,” adding, “We should not be concerned about inflation in the eurozone falling below 2% temporarily,” according to the German news agency.

Nagel, who is also the governor of the German Bundesbank, urged caution regarding calls to cut borrowing costs again starting this month.