ECB's Schnabel: Inflation overshoots due to ECB exercising patience in adjusting policy

"Inflation overshoots may be the result of the Governing Council exercising patience in adjusting its policy stance when faced with an improving outlook," Isabel Schnabel, Member of the Executive Board of the European Central Bank, said on Wednesday.

"Higher inflation prospects need to be visibly reflected in actual underlying inflation dynamics before they warrant a more fundamental reassessment of the medium-term inflation outlook," Schnabel further argued. 

Market reaction

The EUR/USD pair showed no immediate reaction to these comments and was last seen rising 0.38% on a daily basis at 1.1818.