European Central Bank executive member Schnabel: The service industry plays a key role in (affecting potential) inflation, because wage costs have a greater impact on inflation in the service industry.

European Central Bank executive member Schnabel: headline inflation in the euro area fell relatively quickly after peaking at 10.6% in October last year, but underlying inflation (excluding food and energy price volatility) is more persistent and remains high.

ECB executive member Schnabel: Given all these structural forces, I tend to expect higher structural inflationary pressures going forward.

Schnabel, executive member of the European Central Bank: The rate increase of the European Central Bank is transmitted to the bank lending rate very quickly, and the rate of transmission to the deposit rate is much slower.

European Central Bank executive member Schnabel: Central banks always need to consider the side effects of their monetary policy actions, including risks to financial stability.

European Central Bank executive member Schnabel: Rising interest rates have basically changed the macroeconomic environment and exposed vulnerabilities that have accumulated in the financial system during the period of very low interest rates.

European Central Bank executive member Schnabel: High deposit interest rates will provide more savings incentives (thus slowing down consumption). From the perspective of monetary policy transmission, it is desirable that the increase in ECB interest rates be passed on to deposit interest rates.

European Central Bank executive member Schnabel: Due to high uncertainty about the persistence of inflation, the cost of doing too little is still greater than the cost of doing too much.

European Central Bank executive member Schnabel: peak underlying inflation is not enough to call victory.

European Central Bank executive member Schnabel: We have more work to do.

European Central Bank executive member Schnabel: The underlying inflation rate is still high.

European Central Bank executive member Schnabel: However, there is great uncertainty about the intensity and speed of this process.

European Central Bank executive member Schnabel: The impact of our tightening monetary policy on inflation is expected to peak in 2024.

Regarding when the European Central Bank will pause interest rate hikes, European Central Bank executive member Schnabel said that how much interest rates need to be raised depends on the data to be released.

Draft Japanese government policy: The budget for the next fiscal year will strengthen child care and defense budgets.

Draft Japanese government policy: The Bank of Japan will continue to raise wages to meet its 2% inflation target.

British Ministry of Defense: In the next few days, the Kakhovka Dam may further collapse, causing more flooding.

Japanese Finance Minister Shunichi Suzuki: The government must investigate whether it can buy ETFs held by Japanese banks at book value to secure a source of income.