The ECB still has a way to go according to Isabel Schnabel

(Boursier.com) — Isabel Schnabel persists and signs. The European Central Bank’s work to control consumer prices is not yet complete, according to the member of the ECB Governing Council. Speaking to the ‘Süddeutsche Zeitung’ newspaper, she said inflation is likely to accelerate “temporarily” before slowing “gradually” to reach the 2% target by 2025. “We still have a way to go to go… We will see how difficult the famous last kilometer will be.”

“We will only be satisfied if inflation falls sustainably to 2%,” she added, not directly addressing the timetable for a possible reduction in borrowing costs. Isabel Schnabel is reputed to be one of the most hawkish members of the European Institution. “We acted relatively late, but all the more decisively,” the leader also indicated. “We have raised interest rates sharply in a short period of time and there is no doubt that monetary policy has contributed to the fall in inflation.”

While the market is betting on multiple rate cuts in 2024, ECB members are being much more cautious, like Christine Lagarde during the ECB’s last press conference.