Headline inflation will remain bumpy

ECB board member Isabel Schnabel argued that the European Central Bank does not need to lower interest rates to a level that would stimulate the economy, as she believes inflation is unlikely to fall below the bank’s 2% target.

Key Quotes

Disinflation remains on track, which allowed us to lower rates further in October, but the fight against inflation is not yet won.
A gradual approach to removing restrictions remains appropriate.  
The neutral rate is subject to high uncertainty.  
No need to go below neutral.  
Risk of meaningful and persistent undershooting of inflation target remains small.