Schnabel Sees Clarity on Rate-Hikes Coming

European Central Bank (ECB) Executive Board member Isabel Schnabel believes that the coming months will provide clarity on the rate-hike path. Speaking in Luxembourg, she said policymakers will gain a clearer picture of how price pressures stemming from the Iran war are feeding through to the economy and inflation expectations.

The energy shock caused by the conflict is expected to impact the ECB's decision-making process, as Schnabel emphasized the importance of understanding its extent. Policymakers will also consider the effect of interest-rate increases to date on the economy.