- Comfortable with bets that next move will be a rate hike
- Barring shocks, interest rates are at appropriate levels
- The economy has been much more resilient than could have been expected
- ECB can tolerate moderate deviations from the target
- What matters is the overall macroeconomic narrative
- Inflation is in good place
- Services inflation remains the most important challenge
Bloomber with the report. Schnabel generally leans on a more hawkish side and she was one of the first members saying that rate hikes could come earlier than people expected.
Schnabel notes that “the decline in core inflation has stalled at a time when the economy is recovering, the output gap is closing and fiscal policy is expanding, all of which would tend to be inflationary”
This article was written by Giuseppe Dellamotta at investinglive.com.
