ECB may hike rates to slow inflation – Schnabel

The eurozone inflation forecast has failed to enhance the interest rate since it rose in July rate, the European Central Bank (ECB) board member Isabel Schnabel said.

Schnabel prefers another interest rate increase next month even as recession risks slumped.

ECB reduced inflation angst that consumer prices could still accelerate in the short term, Schnabel added.

The bloc’s borrowing costs jumped on Wednesday on inflation fears after UK price growth hit double digits.

This shifted investors’ focus away from less monetary tightening due to recession risks.

The central bank has surprised investors with a 50-basis-point rate hike last month fearing that inflation.