Central Banks

ECB Inflation Task Requires Restrictive Rates, Schnabel Says

  • ‘No trade-off between price stability and financial stability’
  • Executive Board member Isabel Schnabel speaks in London
Isabel SchnabelPhotographer: Ben Kilb/Bloomberg
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The European Central Bank can keep raising rates to a “sufficiently restrictive level” without worrying about financial stability, according to Executive Board member Isabel Schnabel.

“The ECB can continue to do whatever is needed to bring inflation back to our 2% target in a timely manner,” she said in a speech in London on Friday. “This implies raising rates to a sufficiently restrictive level and keeping them at that level for as long as necessary.”