Rising energy prices may force the European Central Bank to stop 'looking through' high inflation and act to temper price growth, particularly if the green transition proves inflationary, ECB board member Isabel Schnabel said on Saturday.
Isabel Schnabel, member of the German advisory board of economic experts attends the 29th Frankfurt European Banking Congress at the Old Opera house in Frankfurt, Germany November 22, 2019. REUTERS/Ralph OrlowskiFRANKFURT, Jan 8 - Rising energy prices may force the European Central Bank to stop "looking through" high inflation and act to temper price growth, particularly if the green transition proves inflationary, ECB board member Isabel Schnabel said on Saturday.
"The green transition poses upside risks to medium-term inflation," Schnabel said in a speech. "Rising energy prices may require a departure from a 'looking through' policy."Schnabel said there were two scenarios in which the ECB would have to change policy. "So far, however, there are no signs of broader second-round effects," Schnabel argued. "Wage growth and demands by unions remain comparatively moderate."
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