ECB’s Schnabel: Disinflation remains on track, but inflation fight is not yet won

ECB’s Schnabel is speaking and says:

  • Disinflation remains on track, which allowed the ECB to lower rates further in October
  • Warns that the fight against inflation is not yet won.
  • A gradual approach to removing restriction remains appropriate.
  • Neutral rate is subject to high uncertainty.
  • No need to go below neutral (COMMENT: even though it is undefined…)
  • Risk of meaningful and persistent undershoot in of inflation target remains small
  • Headline inflation remain a bit of the due to energy.
  • We will get inflation back to 2% target in sustainable manner next year.

This article was written by Greg Michalowski at www.forexlive.com. Source