ECB Needs Robust Sign Core Inflation Easing, Schnabel Says

The European Central Bank will need to see a strong sign that underlying price growth is slowing to its 2% goal before borrowing costs can be lowered again, Executive Board member Isabel Schnabel said.

“Rates must reach a sufficiently restrictive level. We need to see that our policies are being transmitted to the economy,” she said in a Q&A session on Twitter. “We’ll keep rates high until we see robust evidence that underlying inflation returns to our target in a timely and durable manner.”