Pietro Naj-Oleari
In October, the regulator maintained the deposit rate at 2% for the third time in a row. The main refinancing operations rate remained at 2.15%, and the margin lending rate stayed at 2.4%.
Inflation in the Eurozone has remained near the ECB's 2% target in recent months. For October, preliminary data showed an annual inflation rate of 2.1%.
Schnabel said there is no need to change interest rates in the Eurozone unless there is a risk of major changes in inflation. Some ECB officials worry that slow economic growth might cause inflation to stay below the 2% target for a long time. However, Schnabel believes there is a greater likelihood that consumer prices will rise faster in the region.
She also noted that the Eurozone economy has shown more strength than expected in dealing with higher US import tariffs.
source: wsj.com
Inflation in the Eurozone has remained near the ECB's 2% target in recent months. For October, preliminary data showed an annual inflation rate of 2.1%.
Schnabel said there is no need to change interest rates in the Eurozone unless there is a risk of major changes in inflation. Some ECB officials worry that slow economic growth might cause inflation to stay below the 2% target for a long time. However, Schnabel believes there is a greater likelihood that consumer prices will rise faster in the region.
She also noted that the Eurozone economy has shown more strength than expected in dealing with higher US import tariffs.
source: wsj.com
