Central Banks
ECB Must Be Careful Not to Cut Rates Too Soon, Schnabel Says
- German official wants assurance inflation is headed back to 2%
- Most officials split between lowering starting April or June
Isabel Schnabel
Photographer: Ben Kilb/BloombergThis article is for subscribers only.
European Central Bank Executive Board member Isabel Schnabel warned again against lowering interest rates too early for fear that inflation will rebound.
In a speech in Florence, Italy, Schnabel said that monetary policy must remain restrictive until the ECB can be confident price gains will sustainably return to the 2% medium-term target.