ECB's Schnabel: Fundamental departure from ECB's current policy does not seem appropriate

"It is not within the power of the central bank to change the structural conditions that would turn around the negative interest rate trend," new appointee to the ECB's board, Isabel Schnabel, said on Tuesday. "The call for higher interest rates should instead be directed at governments and legislators, combined with the urgent demand for measures to strengthen the growth potential of our economies."

These comments had little to no impact on the shared currency and the EUR/USD pair was last seen trading at 1.0915, adding 0.06% on the day.

Key quotes

"ECB’s current monetary policy stance is necessary in order to achieve sustained price stability in the euro area."

"Despite the latest surge, CPI-adjusted real estate prices in Germany are still at a comparatively low level by international standards."

"Highly indebted member states did not make enough use of the period of low interest rates to consolidate their government budgets."

"In the current situation, a fundamental departure from ECB's current policy does not seem appropriate."

"It is primarily up to other policymakers to counter side effects of the monetary policy."