Home›Forex›Central Banks›Schnabel says inflation may stay above 2%, ECB may nee…

Schnabel says inflation may stay above 2%, ECB may need more tightening

EUR/USD was around 1.1665 after the comments, with the euro seeing no immediate move as markets weighed the ECB reaction function.

Reported · Written up by our desk · Central Banks

European Central Bank Executive Board member Isabel Schnabel said inflation is unlikely to return to the ECB’s target over the medium term, implying the central bank may need additional tightening to prevent second round effects, according to FXStreet citing Bloomberg.

Schnabel added that the extent of any further tightening would depend on incoming data, while noting that the natural gas situation is particularly concerning and that the economy appears to be gaining momentum.

FXStreet reported that there was no immediate impact from Schnabel’s comments on the euro, with EUR/USD trading lower at about 1.1665 as the US dollar firmed.

Latest closeNat gas $2.715 ▼0.4%|EUR/USD 1.157 ▲0.4%

More like this

Sources