© Reuters. FILE PHOTO: Isabel Schnabel, member of the German advisory board of economic experts attends the 29th Frankfurt European Banking Congress (EBC) at the Old Opera house in Frankfurt, Germany November 22, 2019. REUTERS/Ralph Orlowski
FRANKFURT (Reuters) – The European Central Bank may need to raise interest rates as soon as July to stop high inflation from getting entrenched, ECB board member Isabel Schnabel told German newspaper Handelsblatt on Tuesday.
“Now it’s not enough to talk, we have to act,” Schnabel was quoted as saying. “From today’s perspective, I think a rate hike in July is possible.”
Before then the ECB must end its bond purchase scheme, probably at the end of June, Schnabel added, warning inflation is becoming increasingly broad.
ECB may need to hike rates in July, board member Schnabel says