ECB's Schnabel: Further Hikes Needed to Reach 2% Inflation Target

European Central Bank (ECB) Executive Board member Isabel Schnabel said on Wednesday that further interest rate hikes are still necessary to achieve the central bank's 2% inflation goal. Her remarks underscore the ECB's ongoing commitment to tightening monetary policy despite recent economic headwinds.

Speaking on the current outlook, Schnabel emphasized that inflation remains too elevated and that more aggressive action is warranted. The comment aligns with the ECB's data-dependent approach, signaling that rates may continue to rise at upcoming meetings.

Market participants will watch for additional guidance from other ECB officials and upcoming inflation data to gauge the pace of future rate moves.