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Bundesbank (Deutsche Bundesbank) President Joachim Nagel said on Monday that inflation in Germany remains "very high" and that the European Central Bank's (ECB) target of 2% will not be reached before 2025.

Nagel said the ECB had stopped buying government bonds and had started to reduce its holdings "very cautiously" to 15 billion euros a month.

He also believes that the amount of tightening needs to accelerate as the ECB currently has a bond portfolio of almost €5 trillion.

"The markets can accept it well. And in terms of monetary policy, the balance of the Eurosystem is needed to achieve it faster," the head of the Bundesbank pointed out.

Germany

inflation