Isabel Schnabel is an executive board member of the European Central Bank, speaking over the weekend.
Schnabel said she sees growing signs that European inflation expectations are moving more closely to the ECB's inflation goal. And:
- higher inflation prospects need to visibly migrate into the baseline scenario, and be reflected in actual underlying inflation dynamics
- Such patience may lead to inflation outcomes being moderately above our aim for a temporary period of time. This will be a necessary and proportionate requirement to set the conditions to escape low inflation
Adds that fear about inflation being too high are unfounded.
