Statements by ECB Executive Board member Isabel Schnabel were as follows:
- Inflation developments are encouraging, and the decline in basic prices is noticeable.
- We should be careful about directing policy for several months.
- The current level of restrictions is sufficient, and it has increased confidence in meeting the inflation target of 2% in 2025.
- Further rate hikes are "somewhat unlikely" after November inflation data, but we must not declare victory prematurely.
- Inflation is on track but further progress is needed.
- No long-term recession.
- Data suggest the economy could reach its lowest levels.
She's not saying anything the markets haven't considered as traders are starting to look to the first European interest cut as early as next March.
