Central Banks
ECB’s Schnabel Says Weaker Demand May Not Ease Price Pressure
- Inflation uncertainty needs ‘robust control’ policy approach
- Executive Board member Isabel Schnabel speaks in Spain
Isabel Schnabel
Photographer: Alex Kraus/BloombergThis article is for subscribers only.
European Central Bank Executive Board member Isabel Schnabel said that even an economic slowdown in Europe may not be enough to tame inflation, urging more increases in borrowing costs.
Uncertainty about the persistence of price pressures continues to call for a “robust control” approach to monetary policy, Schnabel said Friday in a speech in Spain. Such a stance reduces the danger that medium- and long-term inflation expectations move further away from the 2% target, she said.