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ECB’s Schnabel Warns Against Hopes for Blockbuster Stimulus

  • Current financing conditions should be preserved, not loosened
  • Board member says ECB isn’t beholden to market expectations
Updated on

The European Central Bank should focus on keeping financial conditions at current levels through the crisis rather than announcing a blockbuster stimulus package that beats market expectations, according to Executive Board member Isabel Schnabel.

Just over a week before the ECB Governing Council’s policy decision, Schnabel confirmed that more support is likely because the pandemic will be more protracted than expected. “This has to be reflected in our policy decisions,” she said in an interview on Monday.