European Central Bank executive board member Isabel Schnabel sees the next move in euro zone interest rates being up, not down. Photograph: Alex Kraus/BloombergEuropean Central Bank (ECB) senior policymaker Isabel Schnabel delivered what one analyst described as a “bombshell” last week. Her comments reflect the rapidly shifting outlook for interest rates. Only a few months ago markets were expecting more ECB rate cuts, but the rapid reduction in inflation combined with a more positive economic outlook has halted Frankfurt’s rate-cutting cycle. ECB chief Christine Lagarde said rate-setters would probably lift their growth forecasts for the euro zone when they meet later this week.

Source: The Irish Times December 16, 2025 15:01 UTC