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© Reuters. PHOTO OF THE FILE: Isabel Schnabel, member of the German Advisory Board of Economic Experts, took part in the 29th European Banking Congress (EBC) in Frankfurt (Germany) on 22 November 2019. REUTERS / Ralph Orlowski
BERLIN (Reuters) – Eurozone inflation is unlikely to be surpassed and price increases caused by the coronavirus pandemic will be temporary, European Central Bank Commissioner Isabel Schnabel said on Saturday.
“I’m sure we won’t have too much inflation,” Schnabel told the Frankfurter Allgemeine Sonntagszeitung in summaries of an interview he published before.
Schnabel’s comments on the accounts of the ECB’s June policy meeting emerged from the day after the growing concern among Conservative politicians that the rise in inflation may be more sustained than now predicted.
Commenting on Schnabel’s new and symmetrical ECB inflation target of 2%, he said: “On the one hand, the growth of the inflation target is minimal. On the other hand, the 2% target has an important function: it creates additional space for our monetary policy to have a stabilizing impact.”
He added that interest rates will not be maintained forever and that it is essential for European governments to facilitate the return of large amounts of stimulus spending to a sustainable growth path.
Schnabel’s comments on the growth echoed statements made at a conference in Germany a week ago.
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