ECB’s Schnabel sees inflation risks ‘skewed to the upside’

“It’s plausible to assume that inflation is going to drop below our target of 2% in the medium term. However, the risks to inflation are skewed to the upside,” Schnabel said.

BRUSSELS: European Central Bank (ECB) executive board member Isabel Schnabel says there’s an increasing threat of inflation taking hold, as she plays down the danger that resurgent coronavirus infections may impede the eurozone’s recovery.

In an interview in Frankfurt just weeks before a crucial decision on stimulus, the German-born official responsible for market operations went on to suggest that an emergency contingency would still be needed even as the future focus of monetary policy possibly shifts away from asset purchases.