Softening remarks by ECB hawk prompts bets on March interest rate cut

Inflation data released last week now make another hike in borrowing costs 'rather unlikely', Isabel Schnabel said

ECB board member Isabel Schnabel: 'When the facts change, I change my mind. What do you do, sir?'

One of the European Central Bank’s most hawkish officials said inflation was showing a “remarkable” slowdown, a U-turn prompting markets to ramp up bets on an interest-rate cut as early as March.

Executive board member Isabel Schnabel said the consumer-price data released last week now make another hike in borrowing costs “rather unlikely”, but refused to be drawn on the prospect a reduction could even transpire within six months.