Euro zone inflation easing as predicted, Schnabel says

FRANKFURT (Reuters) – Euro zone inflation is falling as predicted by the European Central Bank, easing the risk that further rate cuts could derail disinflation, ECB board member Isabel Schnabel said on Friday.

“Recent data remain consistent with the baseline scenario that sees inflation declining sustainably to our 2% target by the end of 2025,” Schnabel said at a conference in Tallinn, Estonia.

“Coupled with signs of a possible decline in economic momentum elsewhere in the world, there is less risk that a gradual and moderate reduction in monetary policy could derail the path back to price stability,” Schnabel added.

(Reporting by Balazs Koranyi)