Why would the European Central Bank’s German representative promote a hike in interest rates when the euro bloc’s biggest economy has been in recession for the last two years? Isabel Schnabel is “rather comfortable” with the futures market starting to anticipate the central bank will tighten monetary conditions as its next move. That would risk making a major policy error, condemning the euro area to a continued bout of anemic growth.
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ECB's Schnabel Is Crying Wolf on Rate Increases
