ECB’s Schnabel says yield surge could cool inflation pressures
The European Central Bank (ECB) Governing Council member Isabel Schnabel said that high costs are passed through to consumers more quickly when the economy is resilient.
ECB member Isabel Schnabel suggested that rising global yields could help cool inflation, as high costs are passed on to consumers more quickly when the economy is strong. She noted that the economic response to the recent surge in global yields may be greater than previously thought, which could help dampen price pressures and bring inflation back to the target more gradually.
Schnabel also pointed out that robust credit dynamics indicate that financial conditions are not yet restrictive. The Euro showed strong performance against the New Zealand Dollar this month, while the heat map displayed percentage changes of major currencies against each other, with the Euro being the strongest.
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