ECB’s Schnabel: We must be cautious not to adjust policy stance prematurely
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European Central Bank (ECB) executive board member Isabel Schnabel said on Friday, “we must be cautious not to adjust policy stance prematurely.”
Monetary policy needs to remain restrictive until we can be confident that inflation will sustainably return to our medium-term target.
Persistently low productivity growth increases the risk that firms may pass higher wage costs on to consumers, which could delay inflation goal timing.
At the time of writing, EUR/USD is trading 0.04% lower on the day at around 1.0764, unfazed by the above comments.
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