There is a ‘High Bar’ for another rate cut

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The European Central Bank (ECB) Governing Council member Joachim Nagel spoke in Jackson Hole, Wyoming, where he’s attending the Federal Reserve’s annual symposium. Nagel said that the central bank would need a significant shift in the economic outlook to lower borrowing costs again, Bloomberg reported on Sunday.  Key quotes The Eurozone is in a kind of equilibrium with inflation and interest rates both at 2%.  I think the bar is high. So it needs a lot to convince me to change monetary policy. Market reaction At the time of press, the EUR/USD pair was down 0.19% on the day at 1.1697. Euro FAQs The Euro is the currency for the 19 European Union countries that belong to the Eurozone. It is the second most heavily traded currency in the world behind the US Dollar. In 2022, it accounted for 31% of all foreign exchange transactions, with an average daily turnover of over $2.2 trillion a day. EUR/USD is the most heavily traded currency pair in the world, accounting for an estimated 30% off all transactions, followed by EUR/JPY (4%), EUR/GBP (3%) and EUR/AUD (2%). The European Central Bank (ECB) in Frankfurt, Germany, is the reserve bank for the Eurozone. The ECB sets interest rates and manages monetary policy. The ECB’s primary mandate is to maintain price stability, which means either controlling inflation or stimulating growth. Its primary tool is the raising or lowering of interest rates. Relatively high interest rates – or the expectation of higher rates – will usually benefit the Euro and vice versa. The ECB Governing Council makes monetary policy decisions at meetings held eight times a year. Decisions are made by heads of the Eurozone national banks and six permanent members, including the President of the ECB, Christine Lagarde. Eurozone inflation data, measured by the Harmonized Index…