ECB board member Nagel said the path of interest rate policy could change due to the US imposing tariffs.

Joachim Nagel, member of the Governing Council of the European Central Bank and President of the Bundesbank, stated that the prospect of the United States imposing new tariffs may force policymakers to reassess whether the interest rate reduction cycle has come to an end. When asked about the potential impact of President Donald Trump's threat to impose additional tariffs on borrowing costs, Nagel noted that this situation could harm the Eurozone economy and prompt policymakers to respond. Nagel, speaking at the World Economic Forum in Davos, said: "The current tariff situation has already had a negative impact on economic growth - roughly around -0.1 percentage points. If this escalates further, the negative impact will undoubtedly be greater."