ECB Executive Board member Isabel Schnabel said yesterday, “you can’t say that monetary policy is having such an impact that we can hope for inflation to reach our 2% target in the medium term.”
“We’ll closely look at what’s happening on labor markets, what’s happening to investments, how the economy develops overall,” she added.
“We have to ask ourselves is for how long we need to stay in restrictive territory,” Schnabel said. “It’ll depend on whether we have robust evidence that inflation, and especially underlying inflation, is converging back to our 2% target and stabilizes there.”
