BancaMarch: ECB Executive Board member Isabel Schnabel has said that the threat of potential price shocks makes it impossible to commit to a fixed path for the level of interest rates.
The monetary authority expects a process with ups and downs in price changes, although Schnabel said that recent progress points in the right direction. She added that now that inflation is easing, wage growth is gradually declining and there are no indications of a wage-price spiral (as in 1970).
On the other hand, she also says she is not concerned about the temporary divergence in the pace of rate cuts between the ECB and the Fed.
