European Central Bank Executive Board member Schnabel: The central bank should maintain the interest rate unchanged, and inflation may still be higher than expected.

European Central Bank Executive Board member Schnabel said that the European Central Bank should maintain interest rates unchanged, as the eurozone economy is able to remain stable in the face of US tariffs, and inflation rates may still be higher than expected. The European Central Bank recently ended a year-long period of loose monetary policy, and policymakers are currently waiting to see the full impact of the US tariff agreement reached in July before deciding whether further cuts in borrowing costs are needed. Schnabel is one of the most influential hawks in the European Central Bank, and she believes that there is no need for further rate cuts, as the current 2% policy rate may "moderately" stimulate the already active economy. She said: "I think we may have already adopted a slightly accommodative policy, so in the current situation, I don't see any reason for further rate cuts."