Central Banks
ECB Should Proceed Cautiously With Rate Cuts, Schnabel Warns
- Current inflation ‘understates’ monetary-policy challenges
- Executive Board member gives speech at Estonian central bank
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The European Central Bank shouldn’t lower interest rates too quickly as risks to inflation’s return to 2% persist, according to Executive Board member Isabel Schnabel.
While data have broadly confirmed the ECB’s baseline outlook, bolstering confidence that the price target can be reached by the end of 2025, services inflation remains elevated and could yet hold back the overall retreat, Schnabel said Friday.