Headlines
ECB's Schnabel sets bar 'very high' for rate cut as economy holds up
Published by Global Banking & Finance Review®
Posted on July 11, 2025
1 min readLast updated: January 23, 2026
Quick Summary
ECB's Isabel Schnabel states a high threshold for rate cuts due to stable euro zone economy and anchored inflation at 2%.
ECB's Schnabel Indicates High Threshold for Future Rate Cuts
FRANKFURT (Reuters) -The hurdle for another interest rate cut by the European Central Bank is "very high" as the euro zone economy is holding up better than expected and inflation is moored at 2%, ECB board member Isabel Schnabel said in an interview published on Friday.
"Inflation is projected to be at 2% and inflation expectations are well anchored," Schnabel told financial newswire Econonostream. "In view of this, our interest rates are also in a good place, and the bar for another rate cut is very high."
(Reporting by Francesco Canepa; Editing by Alison Williams)
Key Takeaways
- •ECB's Schnabel indicates a high bar for future rate cuts.
- •Euro zone economy is performing better than expected.
- •Inflation is stable at 2%, anchoring expectations.
- •Current interest rates are deemed appropriate.
- •Schnabel's comments were made in a recent interview.
Frequently Asked Questions about ECB's Schnabel sets bar 'very high' for rate cut as economy holds up
1What did Schnabel say about the possibility of a rate cut?
Schnabel stated that the hurdle for another interest rate cut by the ECB is 'very high' as the euro zone economy is holding up better than expected.
2What is the current inflation rate in the euro zone?
The inflation rate is projected to be at 2%, with inflation expectations well anchored according to Schnabel.
3How does Schnabel view the current interest rates?
Schnabel believes that the current interest rates are in a good place given the stable inflation and economic conditions.
