ECB's Schnabel Sees Only Limited Room for Further Rate Cuts.

The European Central Bank's Executive Board member Isabel Schnabel warns against cutting interest rates too far, as borrowing costs are already at a level that may not restrain the economy. She suggests a gradual approach to monetary policy easing to avoid moving rates below the neutral threshold, estimated at 2% to 3%. Schnabel's comments have led to a debate on how the ECB should respond to economic challenges, with differing views on the appropriate level of rate cuts and concerns about global uncertainty, including potential trade tariffs under Donald Trump's administration. [Extracted from the article]