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ECB Official Advocates Steady Interest Rates Amid Economic Stability

02/09/2025 14:13

According to BlockBeats, European Central Bank (ECB) Executive Board member Isabel Schnabel has stated that the ECB should maintain its current interest rates. Despite the challenges posed by U.S. tariffs, the eurozone economy remains stable, and inflation rates may exceed expectations. The ECB recently concluded a year-long period of monetary easing, and policymakers are now assessing the full impact of the U.S. tariff agreement reached in July to determine if further reductions in borrowing costs are necessary. Schnabel, a prominent hawkish figure within the ECB, argues against further rate cuts, suggesting that the current 2% policy rate could moderately stimulate the already active economy. She expressed her view that the ECB might have already implemented a slightly accommodative policy, and under the present circumstances, she sees no justification for additional rate reductions.

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