Schnabel Sounds Alarm on Energy-Price Developments

European Central Bank (ECB) Executive Board member Isabel Schnabel has expressed concern over recent energy-price developments, describing them as 'quite concerning'. The comments come as officials consider further interest-rate increases following last week's move. This is not just about oil prices, but also diesel, which has seen refining capacities drastically reduce and cannot be rebuilt quickly.

Schnabel emphasized the need to address macroeconomic, fiscal, and financial stability in a shock-prone world. The remarks have not yet had an impact on the Euro (EUR), which remains under pressure against the US Dollar (USD). As of writing, EUR/USD is down 0.5% to near 1.1540.