European Central Bank's Schnabel: We should exercise caution regarding interest rate measures.

Jin10 data reported on May 17 that European Central Bank Executive Board Member Schnabel stated that the European Central Bank should remain cautious regarding interest rate measures. She said, "It is necessary to maintain stability at the moment. We can roughly keep the interest rates at the current level and are confident in maintaining price stability in this way." The European Central Bank has already cut rates seven times, and economists and the market are betting on a further 25 basis point cut in June. Although several policymakers have indicated they would support such a move, Schnabel avoided the question, stating that what will specifically happen remains to be seen. The uncertainty stemming from the Trump trade war has cast a shadow over the outlook, and Schnabel emphasized the significant differences in the impact on inflation in the short and medium term. She stated that falling energy prices and a slowing global economy "should suppress inflation in the short term, but everything could reverse in the medium term." She also emphasized that the recent appreciation of the euro should be "interpreted as" a "signal of confidence" in the currency, and Europe should seize the opportunity.