ECB’s Nagel: Central bank is in a good position to respond to surging energy prices

European Central Bank (ECB) Governing Council Member and President of the Deutsche Bundesbank, Joachim Nagel, said on Friday that the central bank is in a good position to respond to surging energy prices. Nagel added that ECB should not pre-commit to any policy moves before the September policy meeting.

Key quotes

Central bank well-positioned to track upcoming developments closely. 

We are still facing intense uncertainty.

The rate hike in June already put us in a good position from which we can monitor further developments closely.

We are seeing in the Middle East that the situation remains highly fragile.

ECB should not pre-committ to any policy moves in the meantime.

Should instead analyse the heaps of incoming data between now and the next meeting in September.

Market reaction

At the time of writing, the EUR/USD pair is up 0.08% on the day to trade at 1.1381.