Interest rates must rise further on inflation risks, ECB's Schnabel tells Bloomberg
Isabel Schnabel said 2.9% euro area inflation and higher energy costs mean the European Central Bank must tighten further, Bloomberg reported.
25 Articles
25 Articles
In the face of persistently high inflation, Isabel Schnabel, Director of the European Central Bank (ECB) believes that a higher key interest rate level is needed. She identifies risks that could further increase inflation: on the one hand, it is the Iran war, on the other hand, the robust economy in the eurozone. "At the current key interest rate, it is unlikely that inflation will return to the target level in the medium term," she said on Wedn…
Isabel Schnabel, the German representative on the Executive Board of the European Central Bank (ECB), sees the need for eurozone interest rates to rise again, as the protracted conflict in the Middle East, which has been extending since last March, and the strength of the eurozone economy pose upward risks to inflation. In statements to Bloomberg, she warned that price developments will remain above the 2% target for a long time as a result of e…
Global Market: ECB may raise rates in September as Iran war fuels inflation concerns: Reports
European Central Bank policymakers are increasingly leaning towards a September rate hike as the Iran conflict drives up energy prices and inflation. While inflation is nearing 3% and economic activity remains resilient, officials appear reluctant to signal further tightening beyond September, keeping future decisions dependent on incoming data.
Interest rates in the euro area must rise further, given the extension of the war in the Middle East and the robust economic data that, together, create upside risks for inflation. (ANSA)
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