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ECB’s Schnabel Says Euro Area Faces Weak Outlook in Near Term
The Euro-area economy faces subdued prospects even if the worst of the downturn may be over, while rate cut expectations lead to looser financial conditions, European Central Bank Executive Board member Isabel Schnabel said. “There is evidence that sentiment indicators are bottoming out, but the near-term economic outlook remains weak in line with our projections,” Schnabel said in a Q&A session on X. “At the same time, financial conditions have loosened more than projected, while energy prices have been weaker.” The ECB has kept interest rates on hold as it assesses the impact of its tightening campaign on ... (full story)