European Central Bank Signals Potential Rate Hike Amid Economic Recovery
The European Central Bank (ECB) is considering a future interest rate hike, although it is not expected to occur imminently. ECB board member Isabel Schnabel indicated in an interview with Bloomberg News that while markets and survey participants anticipate a rate increase, the timing remains uncertain. The ECB has previously reduced rates by a total of 2 percentage points up to June but has since maintained them. Schnabel highlighted that the risks to growth and inflation are skewed towards higher levels than the ECB's forecasts, partly due to the eurozone economy's resilience against U.S. tariffs. The ECB is monitoring the situation as underlying inflation has stabilized, and fiscal policies are expanding, potentially accelerating price growth.