European Central Bank committee member Nagel emphasized that the next interest rate decision must remain cautious.

European Central Bank (ECB) Governing Council member Joachim Nagel said that the ECB should continue to be vigilant of inflation risks and maintain policy flexibility. Nagel stated that the current situation is still very volatile and noted that the unexpected drop in oil prices. "We should remain vigilant, keep an open mind, and maintain policy optionality regardless of what happens in the future. I believe this is the best approach we can take at the moment, which is to make decisions at each meeting," Nagel said. Earlier this week, ECB officials concluded their annual forum in Portugal, but there was no clear consensus on whether further rate hikes are needed. The ECB raised borrowing costs last month, becoming the first central bank among G7 members to take rate hike action due to the conflict in Iran.