ECB Board Member Signals Dovish Policy Shift as Inflation Cools Faster Than Expected
• ECB board member Schnabel signals dovish shift, takes further rate hikes off the table due to "remarkable" drop in inflation
• Investors now expect ECB to reverse course and cut rates next year, with first move seen as early as March
• Schnabel warns against guiding policy too far ahead given rapidly changing inflation figures surprising policymakers
• More progress still needed on underlying inflation and wage growth before declaring victory over high inflation
• Schnabel argues deep recession unlikely with recent data, but uptick in inflation still coming so can't declare victory prematurely