ECB Executive Director Isabel Schnabel said that the central bank's interest rate cut cycle may soon end, and both inflation and the economy are on the right track. “With medium-term inflation stabilizing near target, the current monetary policy cycle is nearing its end,” Schnabel said in Brussels on Thursday. She believes that the underlying consumer price growth — which is expected to be 1.9% in 2026 and 2027 — “just hit the target.” Schnabel emphasized that growth prospects are “generally stable, despite trade conflicts,” and that the ECB's policies “have been successfully transferred to a financing environment where the latter is no longer restrictive.”

ECB Executive Director Isabel Schnabel said that the central bank's interest rate cut cycle may soon end, and both inflation and the economy are on the right track. “With medium-term inflation stabilizing near target, the current monetary policy cycle is nearing its end,” Schnabel said in Brussels on Thursday. She believes that the underlying consumer price growth — which is expected to be 1.9% in 2026 and 2027 — “just hit the target.” Schnabel emphasized that growth prospects are “generally stable, despite trade conflicts,” and that the ECB's policies “have been successfully transferred to a financing environment where the latter is no longer restrictive.”