Schnabel: If the energy shock expands, the European Central Bank will need to raise interest rates

According to Jinshi News, ECB Executive Board member Schnabel stated that if the Iran war leaves a more lasting mark on inflation, the European Central Bank will have to raise interest rates. She pointed out that businesses are planning to raise prices, supply chains are facing disruptions, and households are adjusting their expectations. Schnabel emphasized that if the energy price shock expands, monetary policy will need to tighten to curb the risks to medium-term price stability. She also mentioned that protecting the independence of the central bank is crucial in order to tighten policy when necessary.