Remarks by ECB executive board member, Isabel Schnabel
- Recent rise in yields is a factor of improved outlook
- This is precisely what we would expect and want to see
- Remaining PEPP envelope is “quite large”
- Economy has reached a turning point, short-term outlook has improved
- A premature removal of ECB support would be a great mistake
Her comments on yields strike a stark contrast with what we heard from Panetta earlier in the week here. It looks like there is a different sense of opinion within the ECB ranks on how things are progressing and that sets up an interesting 10 June meeting.