ECB's Schnabel Reiterates Further Rate Hikes Ahead Amid Inflation Risks, June 27

According to Jin10, European Central Bank Executive Board member Isabelle Schnabel warned on Saturday, June 27 that price pressures may remain stronger than expected, even if a U.S.-Iran peace agreement reopens the Strait of Hormuz. Schnabel reiterated the ECB will implement further rate hikes to bring inflation back to its 2% target in the medium term, citing elevated uncertainties and upside risks to food, commodity, and service inflation. She noted consumer inflation expectations have risen, though no wage pressure signals have emerged yet.
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