Schnabel Calls for Further Interest Rate Hikes Amid Euro-Zone Inflation Risks

European Central Bank (ECB) board member Isabel Schnabel believes that interest rates must rise further to combat inflation. In an interview with Bloomberg News, she stated that at the current policy rate, inflation is unlikely to return to target over the medium term. This suggests that the ECB will need to tighten its monetary policy.

Schnabel's comments come as the conflict in the Middle East continues to drag on, and a strong euro-zone economy poses upside risks to inflation. She emphasized the importance of addressing these factors to ensure price stability.