The European Central Bank's Executive Board member Isabel Schnabel said on Friday she thinks the broad disinflation has not started in the Eurozone, so the ECB must hike its interest rates further. According to her, the ECB's interest rates must reach a sufficiently restrictive level.
Also, Schnabel said that the ECB's policymakers will keep rates high until they see robust evidence that underlying inflation returns to the ECB's 2% target.
The official also acknowledged that the interest rate increases will lower economic growth in the region but noted that a recession is not certain and a soft landing is still possible.