ECB’s Nagel Sees Inflation Risks Tilted to Upside, Urges Flexibility

Nagel's framing matters because it splits the two questions the ECB is actually weighing: whether inflation risks skew higher, and whether that skew has yet shown up in wage and price setting. He answers yes to the first and no to the second, which argues for optionality over a fixed path — flexibility as a stance, not a signal. For rate-sensitive pockets of crypto and tokenized RWAs, the practical read is that the ECB's reaction function stays data-dependent, so the pass-through evidence Nagel says is missing becomes the variable worth tracking.