European Central Bank's Nagel indicated that further interest rate cuts could endanger price stability.

Joachim Nagel, a member of the European Central Bank's Governing Council, said that further lowering borrowing costs could jeopardize the ECB's target of stabilizing inflation at 2% in the medium term. The President of the German Central Bank stated that the decision to keep the deposit rate unchanged on Thursday was due to the ECB's new forecasts showing that price growth is "roughly" in line with the target. He said, "Further cuts in interest rates could endanger this target."