Schnabel Calls for Higher Interest Rates Amid Euro-Zone Growth

European Central Bank board member Isabel Schnabel believes interest rates must rise further to combat inflation. In an interview with Bloomberg News, published on August 26, Schnabel pointed out that a strong euro-zone economy and the ongoing conflict in the Middle East pose upside risks to inflation.

Schnabel emphasized that at the current policy rate, inflation is unlikely to return to target over the medium term. She stated that 'further tightening will be necessary' to address this issue.