European Central Bank board member Isabel Schnabel spoke over the weekend at Jackson Hole.
Talking tough on the fight to lower inflation:
- “Even if we enter a recession, we have little choice but to continue the normalization path,”
- “If there was a de-anchoring of inflation expectations, the effect on the economy would be even worse.”
- said rates need to stay high, cautioned against pausing on early signs of a potential turn in inflationary pressures – central bank rate setters should instead signal their “strong determination” to bring inflation back to target quickly
Words are easy, there will be questions on the will, political mainly, to hike rates into and in a recession.