ECB's Schnabel Says June Rate Hike Is Needed Despite Middle East Shock
Updated
Updated · Bloomberg · May 26
ECB's Schnabel Says June Rate Hike Is Needed Despite Middle East Shock
7 articles · Updated · Bloomberg · May 26
June should bring an ECB interest-rate increase, Executive Board member Isabel Schnabel told Reuters, saying a hike would be necessary even if the Middle East conflict is resolved quickly.
Schnabel said the current shock is too large and persistent for policymakers to keep looking through, signaling inflation risks strong enough to warrant tighter policy.
Her comments sharpen expectations for the ECB's next meeting by arguing that geopolitical relief alone would not remove the case for a near-term rate increase.
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