FX

ECB’s Schnabel: Sure inflation won’t get ‘excessively high’

Commenting on the inflation outlook, the European Central Bank (ECB) executive board member Isabel Schnabel said Saturday that she is very confident that Eurozone will not experience ‘excessively high inflation.”

Key quotes

“Our medium-term inflation projection is subdued: only 1.4% in 2023. Though that is surrounded by uncertainty, I am sure that we will not experience excessively high inflation.”

“Whether inflation rises sustainably ultimately hinges on whether wages also rise and amplify inflation through second-round effects.”

“So far we have seen little evidence of that — also in Germany.”

“A target of 2% has an important function: it creates space so that our monetary policy can have its stabilizing effect.”

“The new inflation target safeguards our room to maneuver and benefits people.”

“It’s important to “firmly anchor” citizens’ inflation expectations close to the ECB’s goal.”

“Moderately higher inflation is a sign of a better economic outlook.”

“We have to support this with our monetary policy for as long as it takes to achieve our medium-term inflation target.”

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