Reported 8 months ago
Isabel Schnabel, an Executive Board member of the European Central Bank, emphasized the need for flexibility in interest rates due to the risk of new inflation shocks. The ECB recently lowered borrowing costs but has not committed to a fixed rate path, citing the importance of staying data-dependent. Schnabel pointed out that while goods inflation is slowing, price pressures from services are more persistent, and the ECB projects consumer-price growth to reach the 2% target only by the final quarter of 2025.
Source: YAHOO