ECB Executive: Uncertain Price Outlook Prevents Pre-Commitment

Reported 6 months ago

Isabel Schnabel, an Executive Board member of the European Central Bank, expressed caution regarding borrowing costs due to high uncertainty about the consumer-price outlook. She stated that, as future inflation remains uncertain, the ECB cannot commit to a specific rate path. Despite inflation expectations returning to the 2% target, the recent decision to lower interest rates by 25 basis points was made in light of the evolving economic conditions, signaling the complexity of future monetary policy decisions.

Source: YAHOO

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