ECB member Schnabel says: the last mile in reducing inflation may be the most difficult

The statements of Isabelle Schnabel, a member of the Executive Board of the European Central Bank, were :-

- We see inflation in services, and the labor market remains flexible.

- There is an easing in financial conditions as the markets have priced interest rate cuts aggressively.

- The recent events in the Red Sea also raise fears of renewed supply chain disruptions.

- If we take this into account, it makes us wary of adjusting the policy position too early.

- We have made significant progress in terms of inflation, but we have not yet reached the target.

- We must be patient and careful because inflation may flare up again.

 

Schnabel is one of the most hawkish members of the central bank, so these statements are not very surprising, but again, all the ECB members are doing right now is calling for more patience and data dependence, as the ECB continues to try to pull back from market pricing.