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MNI BRIEF: Longer, Weaker Policy Lags Possible- ECB's Schnabel

(MNI) London

The ECB is starting to see the "first signs" that restrictive monetary is being transmitted, Executive Board member Isabel Schnabel said during an LSE panel discussion Friday.

But the pass-through of previous rates decisions could be slower and weaker than previously assumed, she suggested, in part due to still tight labour markets.

According to the ECB's latest Economic Bulletin, published on Friday, policymakers were briefed at the May meeting that much of the tightening impact from previous hikes would happen between now and mid-2024.

MNI London Bureau | +44 20 3983 7894 | luke.heighton@marketnews.com
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MNI London Bureau | +44 20 3983 7894 | luke.heighton@marketnews.com
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