ECB Executive Member Schnabel: ‘The likelihood’ of further interest rate hikes following the latest inflation data is ‘very low’

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Isabel Schnabel, a member of the European Central Bank’s (ECB) executive board, said on Tuesday that “the likelihood of further interest rate hikes is ‘fairly small’ following the latest inflation data.

Inflation developments are encouraging, with core prices falling significantly.

Policy guidance months out must be treated with caution.

The current level of restrictions is sufficient and there is increased confidence that the 2% target will be achieved by 2025.

After the release of November inflation data, further interest rate hikes are “unlikely”.

But victory cannot be declared prematurely.

Inflation is on track, but more progress is needed.

The economy will not be in recession for a long time.

Data suggests the economy may be bottoming out.