Bundesbank President Joachim Nagel advised on Wednesday that the European Central Bank (ECB) should remain cautious ahead of the Council's new forecast in December and "not rush into anything."

"If you look past the monthly ups and downs, you can see that price stability is not far off, but the last stretch of the road still has to be covered," Nagel said in a speech for the Frankfurt Society for Trade, Industry and Science. He emphasized that the ECB keeping its promise of stability is "crucial" for retaining people's trust and that the monetary policy course must lead to the inflation rate stabilizing at 2% in the medium term.

The ECB Governing Council member claimed that the decision to cut key interest rates for the third time in October was "appropriate" given the inflation picture the data was indicating at the time and that the bank's data-driven approach has "proven its worth."