ECB board member argues for keeping interest rates steady due to rising inflation risks.

From Yahoo Finance: 2025-05-09 19:53:00

ECB board member Isabel Schnabel stated that the central bank should halt interest rate cuts due to rising inflation risks. Despite market expectations of a rate cut in June, Schnabel argues that rates should remain steady to support the economy. She highlighted short-term deflationary factors but warned of potential inflationary pressures in the medium term from government spending and trade fragmentation. Schnabel also disputed the belief that U.S. tariffs would lead to deflation in the euro area, suggesting that production costs could ultimately drive up prices. The ECB faces a complex challenge balancing short-term and medium-term inflation concerns.



Read more at Yahoo Finance: ECB should keep steady hand, hold rates close to current levels, Schnabel says