ECB’s Nagel Says Monetary Policy Is in Neutral Territory

Calling policy neutral matters because it removes the implicit bias toward further easing that markets have priced into rate-path expectations. The signal is less about the current level than about the burden of proof shifting: with rates no longer seen as restrictive, additional cuts would need fresh justification rather than being treated as normalization. For crypto and other risk-sensitive assets, a neutral stance from a major central bank is a reminder that the tailwind from falling policy rates is not automatic. Whether other Governing Council members echo Nagel's framing, or push back on it, is the open question.