BancaMarch | The ECB could discuss ‘pauses’ in rate cuts. Isabel Schnabel, a member of the ECB’s executive board, has said that the monetary authority could be close to ending the process of rate cuts in the eurozone, concluding that the risks surrounding inflation are increasingly ‘skewed to the upside’. It should be remembered that, since the summer, the ECB has cut the price of money relatively quickly, and everything indicates that it will do so again at its next meeting in March.
Schnabel thus states that from now on the ECB should begin to debate a ‘pause or interruption’ of the rate cuts. And the fact is that, although Schnabel is considered a ‘hawk’, her statements throw light on the debate and the growing tensions within the ECB regarding economic forecasts. For the time being, the futures market continues to price in three more rate cuts in January, which would leave the deposit rate at 2% at the end of the year.
