ECB's Schnabel: Further rate hikes ‘rather unlikely’ after latest inflation data

Dhwani Mehta FXStreet

European Central Bank (ECB) executive board member Isabel Schnabel said on Tuesday, “further rate hikes are ‘rather unlikely’ after latest inflation data.”

Additional quotes

Inflation developments are encouraging, fall in core prices remarkable.

Must be careful about guiding policy for many months out.

Current level of restriction is sufficient, has increased confidence 2% target will be met in 2025.

Further rate hikes "rather unlikely" after November inflation data.

But must not declare victory prematurely.

Inflation is on the right track but more progress is needed.

No prolonged recession is seen.

Data suggests economy may be bottoming out.

Market reaction

At the time of writing, EUR/USD is trading modestly flat at around 1.0840, unperturbed by the above comments.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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