The ECB, tomorrow and in 2026

There are two types of central bankers in the world: pragmatists and obsessives Isabel Schnabel, the influential member of the ECB Board, falls into the second category. She sees inflationary risks everywhere. GDP growth barely reaching 1% in the eurozone, inflation! Fiscal stimulus aimed at pulling Germany out of a long period of stagnation, inflation! Believing that monetary policy could become too accommodative, she is already launching the debate on raising interest rates. It's premature and dangerous. It is hard to see the eurozone overheating any time soon. Not all downside risks have disappeared. If it does not lower its rates, the ECB must retain the flexibility to do so.