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European Central Bank Executive Board Member Schnabel: Central Bank Should Keep Rates Unchanged, Inflation Could Still Be Higher Than Expected
BlockBeats News, September 2nd - Fabio Panetta, a member of the Executive Board of the European Central Bank, stated that the ECB should maintain the interest rate at the current level. This decision is based on the Eurozone economy's resilience to U.S. tariffs and the possibility that the inflation rate may still be higher than expected. The ECB previously concluded a year-long loose monetary policy phase and is now assessing the full impact of the July agreement on U.S. tariffs to determine if further interest rate cuts are necessary. Panetta is one of the most influential hawks at the ECB and believes that there is no need for further rate cuts. The current policy rate of 2% may "moderately" stimulate the already active economy. She stated: "I think we may have already adopted a mildly accommodative policy, so I do not see a reason for further rate cuts in the current situation." (FX678)
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