Isabel Schnabel speech 'Navigating stormy waters', 5 Nov 2026

The statements

European Central Bank

• Isabel Schnabel: Navigating stormy waters: reflections on monetary policy 2026-11-05 · central bank · one of several topics in this statement

  Schnabel argues central banks should prioritise quickly adjustable instruments and avoid commitments tied to a particular economic environment, saying forward guidance during the pandemic was too Odyssean and that policy rates are more agile than asset purchases.

• Isabel Schnabel: Navigating stormy waters: reflections on monetary policy 2026-11-05 · central bank · one of several topics in this statement

  Schnabel says the appropriate policy response depends on a shock's implications for projected inflation rather than its nature, citing overlapping shocks including the conflict in the Middle East and rising energy prices, and says the ECB is now well positioned to address the current inflation challenge.

• Isabel Schnabel: Navigating stormy waters: reflections on monetary policy 2026-11-05 · central bank · one of several topics in this statement

  Schnabel argues that non-bank finance and rising public debt could threaten monetary dominance, that proper bank regulation reduces financial dominance risk and that governments should resist deregulating banks, and that fiscal consolidation and growth reduce fiscal dominance risk.

• Isabel Schnabel: Navigating stormy waters: reflections on monetary policy 2026-11-05 · central bank · one of several topics in this statement

  Schnabel says monetary policy should be implemented with a balance sheet no larger than necessary, describes the ECB's winding down of APP and PEPP portfolios, and outlines a transition toward structural refinancing operations and a structural securities portfolio.