[ECB Governing Council Member Schnabel: Eurozone Inflation Risks Balanced, Interest Rates Appropriate]
ECB Governing Council Member Schnabel stated that the risks to the Eurozone inflation outlook are balanced and that the current interest rate levels are appropriate. Since June, the ECB has kept interest rates unchanged, and the market expects no rate adjustments at the December meeting either. Forecasts indicate that inflation may fall below the 2% target next year, with inflation close to 2% for most of this year, and it is expected to drop below 2% in 2026 due to base effect calculations. Some policymakers are concerned about entrenched low inflation, but most downplay this risk, and the market believes the ECB has concluded its rate-cutting cycle.