ECB Director Isabel Schnabel has spoken out in favor of adjusting the monetary policy course in view of the high inflation in the euro area. “Now it’s not enough to talk, we have to act,” she said Handelsblatt. “From today’s perspective, I think a rate hike in July is possible.” Before that, the net purchases of bonds should be stopped, probably at the end of June. The rise in prices is not just limited to energy and food. There is no doubt that higher wage demands would come if inflation remained high for a longer period of time. However, wages and prices would not yet drive each other up. The European Central Bank has long been criticized for reacting too hesitantly to the unexpectedly strong and prolonged price development.
ECB Director – Schnabel for higher interest rates – Economy
