Key Facts
• Isabel Schnabel, ECB board member, spoke in Luxembourg on September 15, 2025.
• Schnabel emphasized the need to maintain current interest rates due to inflation risks.
• ECB’s inflation target is 2%, with slight deviations deemed acceptable.
• Schnabel highlighted rising tariffs, service and food prices, and fiscal policies as inflation drivers.
• ECB insiders suggest rates will remain steady unless new shocks hit the eurozone.
• Schnabel stated inflation near 2% and stable employment justify current rate levels.
Summary
European Central Bank (ECB) board member Isabel Schnabel expressed support for maintaining current interest rates, citing heightened inflation risks. Speaking in Luxembourg on September 15, 2025, Schnabel noted that inflation slightly deviating from the ECB’s 2% target is acceptable. She identified factors such as rising tariffs, service and food prices, and fiscal policies as key contributors to inflationary pressures. ECB insiders confirmed that interest rates are likely to remain unchanged unless the eurozone faces new economic shocks. Schnabel also emphasized that stable inflation near 2% and robust employment levels justify the current monetary policy stance.
