With the current policy rate, inflation is unlikely to approach the target level in the medium term. Therefore, further tightening will be necessary, says Schnabel.
She expects growth to be better than the ECB's forecasts for the eurozone and warns in particular that inflationary pressures could lead to compensation demands in wage negotiations.
The European Central Bank (ECB) raised its key interest rate, the deposit rate, to 2.25 percent in June. Markets are pricing in two increases to 2.75 percent - one this year and one early next year.
The ECB's policy rate affects the Swedish Central Bank's monetary policy room for maneuver, including via the exchange rate of the krona against the euro.
