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Central Banks

ECB’s Schnabel Signals It May Be Too Soon to Slow Rate Hikes

  • Rates will probably need to rise into ‘restrictive territory’
  • Speech also warns of fiscal policy worsening inflation task
Isabel Schnabel

Isabel Schnabel

Photographer: Alex Kraus/Bloomberg
Updated on

European Central Bank Executive Board member Isabel Schnabel signaled it may be premature to scale back increases in interest rates with inflation continuing to pose dangers to the euro-zone economy.

In a speech in London, Schnabel said the biggest risk for central banks at present is assuming price gains will ease rapidly and underestimating their persistence.