Schnabel Says ECB Should Not Rush Interest Rate Hikes

Isabel Schnabel, a member of the European Central Bank Governing Council, has stated that the bank should not rush to increase interest rates in response to rising inflation. During a lecture in Zürich, Schnabel argued for a cautious approach, suggesting that policymakers should take the time to determine if the current price shocks are becoming a permanent part of the economic landscape.

"We have the time to look at the data and to analyse what is actually happening, whether there is evidence of second-round effects, how strong the demand environment is, and how likely it is that this inflation shock is becoming entrenched in inflation expectations, and also in wage growth."