Central Banks

ECB’s Schnabel Says Data Caution Against Cutting Rates Soon

  • Labor market resilient, services inflation sticky, she says
  • Executive Board member Isabel Schnabel in Financial Times
Isabel Schnabel Photographer: Ben Kilb/Bloomberg
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Recent economic figures and aggressive market bets on rapid interest-rate cuts mean the European Central Bank should be patient before loosening borrowing costs, according to Executive Board member Isabel Schnabel.

Citing sticky services inflation, a resilient labor market, a notable loosening of financial conditions and tensions in the Red Sea, “this cautions against adjusting the policy stance soon,” she said in a Financial Times interviewBloomberg Terminal.