Europe

ECB to wait for core inflation rise before tightening, Schnabel says

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European Central Bank (ECB) headquarters building is seen in Frankfurt, Germany, March 7, 2018. REUTERS/Ralph Orlowski

FRANKFURT, July 14 (Reuters) - The European Central Bank needs to see higher core inflation before changing its outlook and tightening policy, ECB board member Isabel Schnabel said on Wednesday.

"Inflation overshoots may be the result of the Governing Council exercising patience in adjusting its policy stance when faced with an improving outlook," Schnabel said.

"Higher inflation prospects need to be visibly reflected in actual underlying inflation dynamics before they warrant a more fundamental reassessment of the medium-term inflation outlook."

Reporting by Francesco Canepa; editing by Jason Neely

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