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ECB's Schnabel: Only de-anchoring of longer-term inflation expectations would justify more forceful response
European Central Bank Executive Board Member Isabel Schnabel said on Thursday that only a de-anchoring of medium to long-term inflation expectations from our 2.0% target would justify a more forceful policy response to inflation, reported Reuters. The indirect effects of higher energy prices can be a persistent source of upward pressure on underlying inflation, she noted. The fight against climate change is not a reason to raise our inflation target, she noted.
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