ECB's Nagel: We need to take further action

European Central Bank policymaker Joachim Nagel told the German trade journal Zeitschrift für das gesamte Kreditwesen on Monday that he is optimistic that they can avoid a serious economic slump.

"We're not seeing any wage-price spiral in the sense of a further increase in the inflation rate due to current wage agreements," Nagel added and reiterated that the ECB needs to take further action to curb inflation expectations.

Market reaction

EUR/USD showed no immediate reaction to these comments and was last seen trading at 1.0680, losing 0.2% on a daily basis.