Schnabel stresses inflation risks and need for tighter policy
ECB needs to err on the side of doing too much rather than too little, says board member
European Central Bank executive board member Isabel Schnabel stressed inflation risks remain elevated in the eurozone in a speech on June 19.
The official said the ECB needs to “err on the side of doing too much rather than too little”.
Firstly, climate change and the Russian invasion of Ukraine could boost food prices in the coming months, Schnabel said. Additionally, she explained how the tight labour market is boosting wages at a time when the economy is stagnant. Thus, unit labour costs
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