Isabel Schnabel, a member of the European Central Bank’s (ECB) Governing Council, stated on Tuesday that a restrictive monetary policy stance will benefit society in the medium to long run by restoring price stability. “Inflation will not go away on its own.”
“It would be deceptive to blame higher interest rates for a further delay in the green transition.”
“Financing conditions must become more restrictive.”
“Green targeted loan operations, for example, could be a tool, but they are not a viable choice in the near future.”
“As a result, systematic greening of the ECB’s collateral framework is a key instrument.”
