European Central Bank's Schnabel: We should exercise caution regarding interest rate measures.
ECB Executive Board Member Schnabel stated that caution should be maintained in interest rate measures and stability should be upheld. The ECB may cut rates again in June, but Schnabel avoided discussing specific measures due to the uncertainties from the Trump trade war. She pointed out the differences in the impact on inflation in the short and medium term; falling energy prices and a slowing global economy may suppress inflation in the short term, but could reverse in the medium term. Regarding the appreciation of the euro, she believes it is a signal of confidence in the currency, and Europe should seize the opportunity.