Germany names a career banker to head the Bundesbank

[BERLIN] Germany's new government has tapped Joachim Nagel, a career central banker and supporter of the country's conservative monetary policy, to take over as head of the eurozone's largest central bank, the Bundesbank, at a time of growing concern over inflation.

Nagel, 55, spent 17 years at the Bundesbank, including six years on its board. He most recently worked for the Bank for International Settlements, a financial institution based in Basel, Switzerland, that acts as a bank for central banks.

Nagel will succeed Jens Weidmann, who led the Bundesbank for a decade, and join Isabel Schnabel as one of two Germans on the governing council of the European Central Bank.

Weidmann, a former financial adviser to Angela Merkel when she was Germany's chancellor, was one of the most conservative voices on the ECB board, a champion among central bank hawks who prefer tighter fiscal policies.

Nagel has ties to the center-left Social Democratic Party of Chancellor Olaf Scholz, but is expected to maintain the Germans' traditionally tough stance on inflation and emphasis on market discipline for banks and governments - one often at odds with the expansive policies of the European Central Bank.

Last week, the ECB left its interest rate untouched, and Christine Lagarde, the bank's president, said it was "very unlikely" to move higher in the coming year despite rising inflation, which the bank sees as largely driven by high energy prices.

"In view of inflation risks, the importance of a stability-oriented monetary policy is growing," said Christian Lindner, Germany's Finance minister and a member of the liberal Free Democratic Party, as he announced the nomination on Twitter. He praised Nagel as "an experienced personality who ensures the continuity of the Bundesbank."

NYTIMES