Raising rates abruptly could jeopardise economic recovery: ECB’s Schnabel

Isabel Schnabel, member of the German advisory board of economic experts attends the 29th Frankfurt European Banking Congress (EBC) at the Old Opera house in Frankfurt, Germany

Raising interest rates too abruptly could jeopardise economic recovery, European Central Bank board member Isabel Schnabel said in an interview published on Thursday, adding there would be no unwarranted tightening of financing conditions.

“Looking ahead, fiscal and monetary policy support will remain crucial and must not be withdrawn prematurely,” Schnabel told Latvian news agency LETA.

“A too abrupt increase in real interest rates on the back of improving global growth prospects could jeopardise the economic recovery,” she added.

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