Joachim Nagel, a member of the European Central Bank Governing Council, has advised against hastily reducing interest rates, despite indications that inflation is moving closer to the ECB's target. Nagel expects a gradual decline in inflation, particularly in the services sector, as wage pressures ease.

Nagel stressed that the ECB's goal of 2% inflation is approaching, but he urged caution in making adjustments to monetary policy. His remarks demonstrate a cautious approach to managing interest rates in response to changing economic conditions.