ECB’s Lane and Schnabel strike different notes on eurozone inflation

Isabel Schnabel
Isabel Schnabel
Bernd Hartung / European Central Bank

Two senior members of the European Central bank’s governing council have offered what seem to be significantly different views on eurozone inflation expectations.

Isabel Schnabel and Philip Lane both used recent speeches to signal that the ECB will need to tighten monetary policy in the coming months. But they presented very different emphases on what recent data on eurozone consumers’ inflation expectations might mean.

Schnabel warned on August 27 that a shift in the “right tail” of the ECB’s

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