Staff of Reuters 2 minutes ReadFILE PHOTO: Isabel Schnabel, a member of the German Economic Advisory Board, attends the 29th Frankfurt European Banking Congress (EBC) on November 22, 2019 at the Old Opera House in Frankfurt, Germany. REUTERS/File Photo/Ralph Orlowski BERLIN, Germany (Reuters) – According to European Central Bank board member Isabel Schnabel, inflation in the euro zone is unlikely to overshoot, and the present surge in price growth caused by the coronavirus outbreak will be temporary. “I am certain that we will not have too high inflation,” Schnabel said in an interview excerpted ahead of publication with the Frankfurter Allgemeine Sonntagszeitung. Schnabel’s remarks come a day after the minutes of the European Central Bank’s June policy meeting highlighted rising fears among conservative policymakers that the inflation spike may be more persistent than currently anticipated. Schnabe commented on the ECB’s new symmetrical inflation objective of 2% “”On the one hand, the inflation target is only slightly higher.” On the other hand, the 2% target serves an important purpose: it provides more opportunity for our monetary policy to have a stabilizing effect “”Impact.” She went on to say that interest rates would not stay low indefinitely, and that European governments must ensure that the massive stimulus spending they have implemented pave the way for a return to a more sustainable development path. Schnabel’s statements on growth resembled those she made at a conference in Germany a week ago. Douglas Busvine contributed reporting, and Toby Chopra edited the piece./n
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