ECB’s Schnabel Sees Little Prospect of Another Rate Cut

European Central Bank Executive Board member Isabel Schnabel said the hurdle for any additional interest-rate reduction is "very high" because inflation is expected to remain around the ECB’s 2% target and the euro-area economy is proving more resilient than anticipated. In an interview published Friday, Schnabel noted that growth risks are now "more balanced" and that borrowing costs are already "in a good place." Schnabel added that policymakers would consider cutting rates again only if there were a "material" downward deviation in price pressures. Internal projections put consumer-price growth at 1.6% in 2026, but she cautioned that such estimates would need to fall decisively before the Governing Council reopens the debate on easing.