Schnabel, patience on rates, we could flare up inflation. Reducing the cost of money could reinvigorate the stagnant Eurozone economy but also "exacerbate" inflation.
This is the warning launched by Isabel Schnabel, one of the most aggressive 'hawks' of the ECB's executive council. The sharp decline in eurozone inflation reflects the "rapid victories of deflation" as supply shocks ease. But in the battle to get inflation back to 2%, "the last mile remains a concern"