Central Banks
ECB Can Keep Cutting Rates But Not Too Fast, Schnabel Says
- Risks to inflation are broadly balanced, German official says
- Executive Board member gives speech at conference in Paris
Isabel Schnabel
Photographer: Alex Kraus/BloombergThis article is for subscribers only.
The European Central Bank can continue lowering borrowing costs as confidence in inflation moderating to the 2% target rises, but shouldn’t hasten further moves, Executive Board Member Isabel Schnabel said.
In a speech in Paris, the German official described risks to the outlook for consumer price as “broadly balanced.” Following four reductions in 2024, interest rates are nearing levels that neither restrict nor stimulate economic expansion, she said.