Isabel Schnabel said it would be premature to slow the rate of interest rate hikes in an environment where inflation is still high.
Isabel Schnabel, a Member of the Board of the European Central Bank, signaled that inflation still threatens the Eurozone economy, so it would be too early to slow the rate of interest rate hikes.
Speaking in London, Schnabel said that expecting price increases to slow rapidly and underestimating the existence of inflation is the biggest risk Central Banks face at the moment.
Schnabel, one of the hawkish members, stated that it was early to think about this after some ECB officials said that the rate of increase in interest rates will slow down in the recent period, and “although we are approaching a neutral interest rate, the data so far indicates that the space needed to slow down the rate of increase is limited.” made its assessment. Schnabel stated that it is necessary to act based on data.
Also speaking today, ECB Vice President Luis de Guindos said that the next step would depend on data. Eurozone inflation hit a record 10.6% in October. Guindos stated that inflation would begin to decline next year.