ECB’s Schnabel sets bar ‘very high’ for rate cut as economy holds up

FRANKFURT (Reuters) -The hurdle for another interest rate cut by the European Central Bank is “very high” as the euro zone economy is holding up better than expected and inflation is moored at 2%, ECB board member Isabel Schnabel said in an interview published on Friday.

“Inflation is projected to be at 2% and inflation expectations are well anchored,” Schnabel told financial newswire Econonostream. “In view of this, our interest rates are also in a good place, and the bar for another rate cut is very high.”

(Reporting by Francesco Canepa; Editing by Alison Williams)