ECB Can’t Ignore Headwinds to Economic Growth, Schnabel Says
- Return of inflation to 2% is becoming more likely, she says
- Investors and economists expect another rate cut this month
Isabel Schnabel
Photographer: Liesa Johannssen/BloombergThis article is for subscribers only.
The European Central Bank must address the euro area’s disappointing economic performance, according to Executive Board member Isabel Schnabel.
“We cannot ignore the headwinds to growth,” she said in Freiburg, Germany. “With signs of softening labor demand and further progress in disinflation, a sustainable fall of inflation back to our 2% target in a timely manner is becoming more likely, despite still elevated services inflation and strong wage growth.”