ECB executive board member, Isabel Schnabel, remarks to CNBC

  • We are going to look at all instruments
  • There are reasons why we did not cut rates in the past
  • Have to review those reasons again now
  • ECB is facing a different situation than in March
  • Have to discuss the intensity/pace of asset purchases
  • Monetary policy cannot do it all alone, fiscal policy also still needed

Nothing that really stands out all too much as this is mostly in line with what the market is expecting ahead of the ECB policy meeting next month.

Notably, she did not give too much hints of what they may do but again, I would argue that rate cuts are unlikely given the risk-reward and Schnabel heavily emphasised on the cost-benefit issue when asked on that.