ECB’s Schnabel Sees Upside Inflation Risks Despite Peace Deal

European Central Bank (ECB) official Isabel Schnabel indicated that inflation risks remain elevated despite a potential peace deal in the Middle East, suggesting further interest rate hikes may be necessary. Schnabel noted that while energy prices have eased, broader inflationary pressures from food, goods, and services are still a concern. The ECB anticipates continued rate increases to achieve its 2% inflation target.

• •ECB sees upside risks to inflation.
• •Further interest rate hikes are expected.
• •Inflation target remains 2%.