ECB’s Nagel Says Central Banks Can Do More to Support Markets Amid Inflation Concerns

Joachim Nagel, head of Germany’s central bank, said on Monday that global central banks still have significant tools available to stabilize financial markets and restore investor confidence. Speaking ahead of a Group of Seven (G7) meeting of finance ministers and central bankers in Paris, Nagel emphasized that policymakers can do “a lot more” to calm market volatility and create positive momentum for the global economy.

His remarks come at a time when investors remain concerned about persistent inflation, rising energy prices, and the economic impact of the ongoing conflict in the Middle East. Financial markets across the world continued to face pressure on Monday, with government bonds from Tokyo to New York extending losses as traders increased bets on further interest rate hikes from major central banks.

The surge in energy prices has intensified fears that inflation could remain elevated for longer than expected. Analysts say higher oil and gas costs are forcing investors to rethink expectations for monetary policy, especially as central banks continue their fight against inflation. Market participants are closely watching signals from institutions such as the European Central Bank (ECB), the U.S. Federal Reserve, and the Bank of Japan for clues on future rate decisions.

Nagel’s comments highlight growing concerns among policymakers over financial stability and market sentiment. While central banks have already implemented aggressive measures in recent years to combat inflation and economic uncertainty, officials suggest additional action may still be necessary if market conditions worsen.

The G7 meeting in Paris is expected to focus heavily on inflation risks, energy market disruptions, and the broader outlook for the global economy. Investors will also monitor discussions for any coordinated policy responses aimed at reducing volatility and supporting economic growth during a period of heightened geopolitical tensions.