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In a Monday interview, European Central Bank (ECB) policymaker Schnabel remarked that while no immediate rate hikes are anticipated, ongoing inflationary pressures suggest that borrowing costs will inevitably have to climb. She emphasized, "The probability of a rate hike in the near term is quite low, but inflationary forces will ultimately push rates upward." According to Schnabel, the primary factors driving inflation risks upward include food prices, fluctuations in exchange rates, tariff policies, and fiscal stimulus measures, all of which have the potential to ignite global inflationary pressures. Although the ECB's current policy stance is somewhat accommodative, the bank does not intend to modify it unless inflation significantly diverges from its target. Nevertheless, the prospect of higher borrowing costs over the long haul remains a possibility.
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