Joachim Nagel: Inflation Likely to Remain Elevated Amid Geopolitical Tensions

© Oliver Rüther

30.06.2026

EN

On the sidelines of the ECB Forum in Sintra, Portugal, Bundesbank President Joachim Nagel spoke with Annette Weisbach from CNBC and Bloomberg’s Francine Lacqua about the challenges facing the euro area economy and the outlook for monetary policy. In the interview, Nagel said that inflation is likely to remain significantly above the target level this year, as energy prices continue to be affected by ongoing geopolitical tensions.

He noted in the conversation with CNBC that the situation remains "opaque" and it is still too early to assess when inflation will return to the target level.

Monetary policy must remain vigilant, Nagel said. He emphasized that caution and data-driven decisions are warranted.

Regarding economic growth, Nagel admitted that Europe is lagging behind and highlighted the importance of strengthening capital markets and implementing structural reforms. He welcomed the recent steps to improve the German pension system:

That was positive news for Germany and an important step forward to strengthen the capital market and capital markets in Europe,

Nagel said.

Speaking with Bloomberg, he also addressed the reform of old-age provision through a public fund. The Bundesbank sees itself well-positioned to take on this task: "We have the knowledge, we have the expertise, and therefore we are ready for this job." Nagel emphasized that the inclusion of private capital is crucial.

Nagel: I hope we will see more progress in peace efforts. That gives the economy security.

Nagel also commented on the impact of disruptive technologies such as AI in the interviews and expressed optimism regarding the adaptability and innovation capacity of German industry.

He also underscored the importance of stable public finances and geopolitical stability to promote investment and economic security:

I hope we will see more progress in peace efforts. That gives the economy security,

Nagel told the BBC.

In the context of the ECB's preparations for its next monetary policy meetings, he emphasized:

We must wait until we have all the necessary information to draw conclusions. We are keeping all options open.

Nagel also welcomed the participation of the new Federal Reserve Chair Kevin Warsh in the interviews:

Everyone appreciates that he is following the tradition of a visit to Sintra by colleagues from the Fed . He is very welcome.