Schnabel signals June ECB rate hike and warns on autonomy
Isabel Schnabel signaled a June ECB rate hike to counter inflation from the Iran war. She warned that rising debt risks eroding central bank independence.
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ECB Executive Board member Isabel Schnabel signaled a potential interest rate hike as soon as June to counter rising energy costs following the Iran war. Markets now price in four rate hikes over 12 months, which would lift the deposit rate to 3% from 2%. Schnabel also warned of the quiet erosion of central bank independence as rising government debt creates tension between price stability and fiscal sustainability.
