ECB Executive Board Member Stands Firm on Current Interest Rates

In a recent interview with Econostream, European Central Bank (ECB) Executive Board member Isabel Schnabel highlighted the diminishing chances of further interest rate cuts by the Governing Council. "The bar for another rate cut is very high," Schnabel stated, pointing to the current inflation trajectory as being in line with expectations.

Inflation and Exchange Rate Concerns Addressed

Schnabel also dismissed the need for additional monetary easing in the eurozone, addressing concerns over the euro's strength. She argued that the impact of exchange rate appreciation on underlying inflation is likely overstated, citing limited pass-through effects. "The low energy price inflation is likely to be temporary," she added, downplaying fears of prolonged downward pressure on inflation.