European Central Bank Executive Committee member Isabel Schnabel said today that it was time for policymakers to take action to curb inflation and that an increase in interest rates could come as early as July, according to Bloomberg.
“It is not enough to talk now – we must act,” she told the German newspaper Handelsblatt in an interview published on Tuesday. “From today, I think an increase in interest rates is possible in July,” he added.
Schnabel’s statements come just days after ECB Vice President Luis de Guindos “indicated” July as a possible time to raise interest rates, although he said it was not “likely”.
Other policymakers also said an increase in interest rates could be made as early as the third quarter.
Schnabel, considered one of the most important members of the Executive Board, argued that inflationary pressures were “widening” after consumer prices jumped by 7.5% in April, setting a record.
The ECB should “prevent high inflation from dominating as consumers expect,” he said.
Source: Capital
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