Bundesbank President Joachim Nagel announced that the European Central Bank's (ECB) interest rates are approaching a neutral stance, with the deposit facility rate currently at 2%. This rate falls within the estimated nominal natural range of 1.7% to 2.6%. Nagel highlighted that inflation is projected to average around 2% over the next three years, which will be a key factor in shaping future monetary policy decisions. The ECB has recently paused its rate adjustments following a significant tightening cycle of 450 basis points and a subsequent easing of 200 basis points. The upcoming December meeting is anticipated to provide updated forecasts extending through 2028, which could impact market expectations and the sentiment surrounding the euro.