(ANSA) - ROME, DECEMBER 24 - The ECB "clearly must reach an interest rate that is high enough to bring inflation back to 2%", and "in our assessment, this rate is in a restrictive area, i.e. beyond the neutral level ".
This was stated by Isabel Schnabel, member of the executive committee of the ECB, in an interview with the Frankfurter Allgemeine Zeitung.
"The terminal rate, which is the expected peak rate in the bull cycle, has risen above 3%. Whether we have yet to rise further than that level will depend on future inflation prospects."
On December 15, the ECB raised the deposit rate to 2% and the main rate to 2.5%.
(HANDLE).