In a speech, ECB Executive Board member Isabel Schnabel said inflation in Eurozone is “likely to ease noticeably next year”. She warned that “a premature monetary policy tightening in response to a temporary rise in inflation would choke the recovery and be most harmful to those who are already suffering from the current spike in inflation.”
Also she said, “there are good reasons to assume that the current constellation of fiscal and monetary policy in the euro area may finally chart the path out of the low interest rate environment.”
