ECB's Schnabel: Seeing encouraging signs in economy

European Central Bank Executive Board Member Isabel Schnabel said on Monday that they are seeing encouraging signs in the economy, as reported by Reuters.

Additional takeaways

"Happy that inflation is moving up."

"What we're seeing is very much in line with our projections."

"Premature policy tightening bigger mistake than waiting."

"The inflation outlook brightens, it becomes less important how much a central bank buys or when a reduction in the pace of net asset purchases starts but rather when such purchases end."

"It is the end date which signals that the conditions for an increase in policy rates are getting closer. "

"The precise sequencing and timing will, of course, require careful guidance when the time has come."

"Signalling channel is becoming more important as our measures succeed in dispelling tail risks and lifting the expected future path of inflation."

"Our asset purchases – both under the PEPP and the APP – will remain crucial in the time to come, paving the way out of the pandemic and towards reaching our inflation target."

"Stock of assets provides substantial and persistent policy stimulus."

"Forward guidance cannot fully substitute for asset purchases."

Market reaction

These comments don't seem to be receiving a significant market reaction. As of writing, the EUR/USD pair was down 0.13% on the day at 1.1710.