A member of the Council of the European Central Bank (ECB), Isabel Schnabel believes that monetary policy has helped to contain inflation expectations in the euro zone, but does not rule out the risk of de-anchoring. The analysis was made during an event in Germany this Saturday, 2, according to a presentation published on the institution’s website.
Schnabel explains that the shock in energy prices is mainly responsible for the recent rise in inflation in the region, although pressures have become more widespread across sectors in recent months. According to her, the markets began to expect a more aggressive monetary tightening from the ECB due to this movement.
The official added that the economic projections of the European Central Bank indicate that inflation will begin to decelerate in the coming months, but acknowledged that these forecasts have a high history of errors. In her view, there is still no evidence of an inflationary spiral in the euro zone. Still, the risk of that occurring still exists, she said.
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