TechFlow, September 2 — According to Jinshi Data, Isabel Schnabel, Executive Board member of the European Central Bank (ECB), said the ECB should keep interest rates unchanged, as the eurozone economy remains stable despite U.S. tariffs and inflation may still be higher than expected. The ECB recently ended a year-long easing cycle, and policymakers are currently awaiting the full impact of the U.S. tariff agreement reached in July before deciding whether further reductions in borrowing costs are necessary.
Schnabel, one of the most influential hawkish members of the ECB, believes there is no need for additional rate cuts, as the current 2% policy rate could "moderately" stimulate an already active economy. She stated, "I think we may have already adopted a slightly accommodative stance, so under current circumstances, I don't see a rationale for further rate cuts."
