ECB Policy Adjustment

WASHINGTON (Reuters) – The European Central Bank should not rush to alter its monetary policy, according to Bundesbank President Joachim Nagel, who spoke on Saturday following recent calls for quicker rate cuts from some colleagues.

"We shouldn't be too hasty," Nagel stated during a panel discussion in Washington. "We should do what is necessary based on new data."

He emphasized that the upcoming U.S. election, new inflation data, fresh economic projections, and various other indicators would influence the ECB's decisions in December.

Markets have already accounted for a 25 basis point rate cut in December, marking the fourth reduction this year. However, investors also perceive a 40% likelihood of a larger, 50 basis point cut, partly due to more dovish remarks made earlier this week.