BANFF, Alberta (Reuters) -Borrowing costs in the euro zone are no longer acting as a drag on economic growth, European Central Bank policymaker Joachim Nagel said on Thursday, calling for caution in future monetary policy decisions.
“After seven interest rate cuts, our deposit rate stands at 2.25%, a level that can certainly no longer be described as restrictive,” the Bundesbank’s president told reporters on the sidelines of a G7 meeting in Canada.
“Given the continuing high level of uncertainty, we should therefore remain cautious in monetary policy.”
(Reporting By Christian Kraemer; Writing by Francesco Canepa in Frankfurt; Editing by Kirsten Donovan)
