Key facts
- ECB board member Isabel Schnabel indicated that further interest rate increases are necessary.
- Schnabel cited high energy prices as a factor contributing to the need for rate hikes.
- She stated that a ceasefire in the Middle East does not warrant complacency from policymakers.
- The timing and magnitude of future measures will be contingent on economic and inflation developments.
European Central Bank board member Isabel Schnabel indicated that further interest rate increases are necessary to bring inflation back to the bank's 2% medium-term target. In an interview with German newspaper Die Zeit, Schnabel stated that from the current perspective, additional rate hikes are needed. She emphasized that high energy prices and the ongoing conflict in the Middle East mean policymakers cannot afford to lower their guard. Schnabel noted that the extent and timing of any further measures will depend on how the conflict, the broader economy, and inflation evolve.