ECB’s Schnabel Says Temporary Inflation Overshoot Necessary
- Sees growing signs inflation expectations aligning with goal
- Continued fiscal and monetary support needed to sustain trend
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European Central Bank policy maker Isabel Schnabel said it is “necessary and proportionate” that inflation overshoots the institution’s goal for a while as the economy recovers, remarks that may spark a pushback by some colleagues in the Governing Council.
The Executive Board member said on Saturday that she sees “growing evidence” inflation expectations are finally starting to align with the ECB’s target of just-under 2%, but that continued monetary and fiscal stimulus is needed to ensure that happens.