The European Central Bank (ECB) board member Isabel Schnabel said on Thursday that the ECB is on track to push inflation back down to 2% by 2025, but the “last mile” of disinflation is likely to be the most difficult to overcome, so the central bank cannot rule out additional rate hikes. 

Key quotes

“With our current monetary policy stance, we expect inflation to return to our target by 2025.”

“The disinflation process during the last mile will be more uncertain, slower and bumpier.”

“We cannot close the door to further rate hike’s.”

“If Middle East conflict remains contained, energy price impact will be limited.”

Market reaction

The comments above has little to no impact on the Euro. The EUR/USD pair is trading lower on the day at 1.0620, as of writing.