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ECB's Isabel Schnabel signals potential interest rate hikes
Isabel Schnabel, an Executive Board member of the European Central Bank (ECB), has signaled that further interest rate hikes may be necessary to combat persistent inflation. Speaking in various interviews, Schnabel noted that at current policy rates, inflation is unlikely to return to the 2% target over the medium term.
Several factors contribute to this outlook, including elevated energy costs and geopolitical tensions in the Middle East, which pose significant upside risks to inflation. Schnabel warned that waiting for these pressures to fully manifest in wages could leave policymakers 'behind the curve,' potentially necessitating even more aggressive tightening later.
The Eurozone economy has shown unexpected resilience, supported by fiscal policy, defense spending, and the growth of artificial intelligence. This economic strength, combined with inflation risks, has led market participants to price in a potential 25 basis point increase in September, which would bring the deposit rate to 2.5%.
Entities
Bloomberg · European Central Bank · Eurozone · Germany · Isabel Schnabel · Middle East · Reuters
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 3 SOURCES] Inflation is unlikely to return to the target in the medium term at current policy rates. economytoday.sigmalive.com · www.capital.gr · www.newmoney.gr
- [● 7 SOURCES] Inflation is likely to exceed 2% for a protracted period due to high energy costs. economytoday.sigmalive.com · www.capital.gr · www.newmoney.gr · www.actionforex.com · www.businessdaily.gr · +2 more
- [● 3 SOURCES] The Eurozone economy grew by 0.4% in the second quarter. www.capital.gr · zpravy.kurzy.cz · capital.es
- [● 3 SOURCES] Further monetary tightening will be necessary. economytoday.sigmalive.com · www.capital.gr · www.newmoney.gr
- [● 10 SOURCES] Investors have almost fully priced in a 25 basis point increase, bringing the deposit rate to 2.5%. economytoday.sigmalive.com · www.capital.gr · www.newmoney.gr · www.actionforex.com · zpravy.kurzy.cz · +5 more
- [● 16 SOURCES] Inflation is likely to stay above 2% for an extended period due to high energy costs. capital.es · www.it-boltwise.de · www.actionforex.com · zpravy.kurzy.cz · vijesti.hrt.hr · +10 more
- [● 10 SOURCES] At the current policy rate, inflation is unlikely to return to target over the medium term, and therefore further tightening will be necessary. capital.es · www.it-boltwise.de · www.actionforex.com · zpravy.kurzy.cz · vijesti.hrt.hr · +4 more
- [● 18 SOURCES] The resilience of the eurozone economy and the conflict in the Middle East pose inflation risks. capital.es · www.it-boltwise.de · www.actionforex.com · zpravy.kurzy.cz · vijesti.hrt.hr · +12 more
- [● 13 SOURCES] Insiders suggest the ECB may raise interest rates from 2.25% to 2.50% in September. www.cash.ch · vijesti.hrt.hr · www.vz.lt · www.stiridecluj.ro · biznisinfo.mk · +7 more
- [● 4 SOURCES] Low natural gas storage levels in Europe present a significant risk to inflation. capital.es · www.vz.lt · zpravy.kurzy.cz · www.cnn.gr
- [● 4 SOURCES] Economic growth is being supported by fiscal policy, defense spending, and AI development. capital.es · zpravy.kurzy.cz · www.insider.gr · www.it-boltwise.de
- [● 19 SOURCES] Waiting for inflationary pressures to feed fully into wages would risk leaving policymakers behind the curve. capital.es · www.actionforex.com · vijesti.hrt.hr · www.vz.lt · www.businessdaily.gr · +13 more