ECB’s Schnabel: Have Taken First Steps to Reduce Expansionary Monetary Policy
17 January 2022
By David Barwick – FRANKFURT (Econostream) – The European Central Bank has taken the first steps towards withdrawing monetary accommodation, ECB Executive Board member Isabel Schnabel said Sunday.
In an online interview for a forum organised by the students of Aloisius College in Bonn, Schnabel said that the ECB assumed that many of the causes of high inflation would cease during 2022 to have such an effect.
‘And in addition, we have also taken the first steps to gradually reduce the expansionary monetary policy’, she said. ‘And if there should be indications that inflation will indeed remain permanently high, then we would also raise interest rates in the future.