The statements of ECB hawk Isabelle Schnabel were as follows:-
- The eurozone needs to remain economically competitive, maintain a tight level of monetary policy to ensure low inflation.
- The eurozone should work to close the technological gap compared to some economies, especially with the United States.
- Monetary policy should remain restrained until we are confident that inflation will return sustainably to our target in the medium term.
- Continued low productivity growth increases the risk of companies passing on high wage costs to consumers, which could delay the timing of the inflation target.
The probability of an interest rate cut in April is currently about 53%. So, it remains that the ECB did not dissuade traders from ruling out such a move.
