Isabel Schnabel warns inflation may remain elevated, requiring further monetary tightening amid economic momentum and gas concerns.
European Central Bank Executive Board member Isabel Schnabel indicated inflation is likely to exceed the 2% target for an extended period, necessitating additional policy tightening. She emphasized the need to prevent second-round effects early, with tightening extent dependent on incoming data.
Recent economic indicators suggest the Eurozone economy is gaining momentum, while the natural gas situation remains a key concern. The ECB’s primary mandate is price stability, typically achieved through interest rate adjustments, though no immediate market reaction was observed in the Euro.
EUR/USD traded lower at 1.1665 as the US Dollar strengthened, with no direct impact from Schnabel’s remarks at press time.