Central Banks
Schnabel Says Potential Shocks Mean ECB Can’t Precommit on Rates
- ‘Last mile’ of disinflation is proving bumpy, she says
- Executive Board member Isabel Schnabel speaks in Kiel
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The risk of new inflation jolts means that the European Central Bank has to stay flexible on interest rates, according to Executive Board member Isabel Schnabel.
“We could be threatened by new price shocks,” Schnabel said at an awards ceremony in Kiel, Germany, on Sunday. “That’s why we are on alert and haven’t precommitted to a fixed rate path, but are staying data dependent.”