ECB's Schnabel: Hopeful on inflation but cannot close door on rate hikes
|The European Central Bank (ECB) board member Isabel Schnabel said on Thursday that the ECB is on track to push inflation back down to 2% by 2025, but the "last mile" of disinflation is likely to be the most difficult to overcome, so the central bank cannot rule out additional rate hikes.
Key quotes
“With our current monetary policy stance, we expect inflation to return to our target by 2025.”
“The disinflation process during the last mile will be more uncertain, slower and bumpier.”
“We cannot close the door to further rate hike’s.”
“If Middle East conflict remains contained, energy price impact will be limited.”
Market reaction
The comments above has little to no impact on the Euro. The EUR/USD pair is trading lower on the day at 1.0620, as of writing.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.