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ECB Inflation Task Requires Restrictive Rates, Schnabel Says
The European Central Bank can keep raising rates to a “sufficiently restrictive level” without worrying about financial stability, according to Executive Board member Isabel Schnabel. “The ECB can continue to do whatever is needed to bring inflation back to our 2% target in a timely manner,” she said in a speech in London on Friday. “This implies raising rates to a sufficiently restrictive level and keeping them at that level for as long as necessary.” The recent banking crisis in the US and Switzerland has reminded central banks of the difficulty of maintaining both price and financial stability. ECB ... (full story)