Schnabel Sees Need for Higher Interest Rates Amid Euro-Zone Economic Strength

European Central Bank (ECB) board member Isabel Schnabel has emphasized the need for higher interest rates to combat inflation. In an interview with Bloomberg News, she stated that the current policy rate is insufficient to return inflation to target over the medium term.

Schnabel cited the ongoing conflict in the Middle East and a strong euro-zone economy as factors contributing to upside risks to inflation. She noted that further tightening will be necessary to address these concerns.