ECB’s Schnabel says too early to sound ‘all clear’ on inflation

It’s too early to say that the euro zone’s struggle with high inflation is over despite a contraction in the amount of money circulating in the bloc, European Central Bank board member Isabel Schnabel said on Monday.

“The current, unusual contraction in monetary aggregates is unlikely to foreshadow a deep recession but rather reflects a significant rebalancing of portfolios after a long period of low interest rates,” she said in a speech. “Hence, there is not yet an all-clear for the inflation problem.”
Source: Reuters (Reporting by Francesco Canepa; Editing by Hugh Lawson)