Schnabel: The latest inflation data suggest that the ECB may not raise interest rates again

　　Executive Board member Isabel Schnabel said the European Central Bank (ECB) may not raise interest rates again in light of the latest inflation data released last week.

　　In an interview with Reuters, she said: "The latest inflation data suggest that further ECB rate hikes are unlikely. We have to see what happens. We were surprised many times in both directions. So we should be careful."

　　She added: "November's inflation data was a very pleasant surprise. On top of that, underlying inflation, which is proving more stubborn, is also now falling faster than we expected. It's quite remarkable. On balance, inflation developments are encouraging."

　　"We must not prematurely declare victory over inflation," she warned. We continue to expect the peer group to accelerate in the coming months, with some fiscal measures and some base effects leading to a rebound in the data, and we cannot rule out another spike in energy or food prices."

　　After her speech, money market pricing showed traders expected the ECB to cut rates by almost 150 basis points over the course of the year, starting in March. By comparison, three weeks ago the market was pricing in a cut of 75 basis points for all of next year.