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Schnabel Slides Cover Familiar Themes

ECB

At first glance, the slides from ECB's Schnabel don't seem to add much new to the policy debate.

  • The slide pack features familiar ECB charts covering inflation dynamics and the transmission of policy through financing and real estate channels.
  • Slide 7 re-iterates her long-held view that the "last mile" of disinflation will be more difficult.
  • Slide 14: "Profit margins are expected to absorb higher unit labour costs, but risks remain". The full data on the GDP deflator and its components will be available with the national accounts data released March 8.

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