(Finance) – Isabel Schnabel freezes the markets: the member of the executive committee of Central Bank, believes, in fact, cthat there is little room for further rate cuts by the European Central Bank. “Given the inflation outlook, I believe we can gradually move towards neutrality if incoming data continues to confirm our base,” Schnabel said, according to Bloomberg.
“I would caution against going too far into accommodative territory.” The ECB representative estimates neutrality, which cannot be measured precisely, at 2%-3%. With the rate at 3.25% Schnabel said that “we may not be that far away.”
“Concerns about high inflation have shifted to economic growth. Beyond that, geopolitical risks are rising and uncertainty over US politics could affect trade and fiscal policy, with broader implications for the‘economy of the euro area’, said the vice president of the ECB, Luis de Guindos, in an interview with the Finnish newspaper Helsingin Sanomat in recent hours.