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MNI BRIEF: ECB Will Act If Prices Seen Above 2% M/T: Schnabel

(MNI) LONDON
(MNI) Frankfurt

Euro Area inflation will likely fall 'significantly' over the medium term and that is why the European Central Bank is refraining from raising interest rates now, Executive Board member Isabel Schnabel told a German newspaper in an interview published Friday.

But Schnabel was adamant the ECB policymakers would 'act quickly and decisively' if they concluded inflation may settle above 2% across its medium term horizon.

"A precondition for raising interest rates is to end net asset purchases; and our December decision is a first step in this direction', she told the Suddeutsche Zeitung.

MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com
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MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com
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