In an interview with Bloomberg Agency on Friday, Isabel Schnabel, a member of the European Central Bank’s pure policy committee, stated that the process of lowering inflation in the eurozone has not yet begun.
And Schnabel expressed her concern about the very high inflation data that the euro area is witnessing, noting that there are also risks that the markets are underestimating inflation.
Schnabel also stressed the point that the ECB is still far from declaring its victory over inflation data, as there is still a long way to go before achieving the 2% target.
When asked about the current monetary policy situation of the ECB, the member replied that it is not easy to judge whether the ECB’s policy is really restrictive or not.
The German economist confirmed that a further 50 basis point hike in interest rates by the European Central Bank in March would be required under almost all possible scenarios.
The ECB member also added that quantitative tightening is likely to take place at a faster pace after the June ECB meeting.
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