ECB’s Schnabel Sees High Bar for Rate Cut With Economy Resilient

European Central Bank Executive Board member Isabel Schnabel said there’d have to be a major downward shift in inflation to justify another reduction in borrowing costs, dismissing concern that the economy is struggling.

In remarks to Econostream that represent some of the strongest opposition to extending the year-long easing campaign, Schnabel said interest rates are “in a good place,” with disinflation proceeding broadly as expected and the economy proving resilient to uncertainty.