ECB’s Schnabel: The last mile in bringing inflation down may be the most difficult one

  • We see sticky services inflation, resilient labour market
  • There is a loosening of financial conditions as markets aggressively priced in rate cuts
  • Recent events in the Red Sea also spark fears of renewed supply chain disruptions
  • Taken together, this cautions against adjusting policy stance too soon
  • We have made substantial progress on inflation, but we are not there yet
  • We must be patient, cautious as inflation can flare up again

She is one of the more hawkish members at the central bank, so the remarks are not too surprising. But once again, all it does it preach more patience and data-dependency as the ECB continues to try and push back on market pricing.

This article was written by Justin Low at Source