ECB's Schnabel: There is no time for monetary policy to pause

Eren Sengezer FXStreet

European Central Bank (ECB) Governing Council member Isabel Schnabel noted on Thursday that inflation expectations in the Eurozone are still broadly anchored but added that risks of high inflation persistence had increased further, as reported by Reuters.

Additional takeaways

"Only a deep recession with a sharp rise in unemployment would dampen inflation but this is unlikely now."

"There is no time for monetary policy to pause."

"We need to raise rates into restrictive territory."

Market reaction

EURUSD pair showed no immediate reaction to these comments and was last seen losing 0.5% on the day at 0.9960.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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