ECB's Schnabel: He agrees with market expectations that the central bank will raise interest rates next.

ECB Executive Board member Schnabel agrees with investors betting on the ECB's next rate hike. Schnabel stated that borrowing costs are already at a level that will remain appropriate for some time unless new shocks occur, while consumer spending, corporate investment, and significant government spending on defense and infrastructure will continue to boost the economy. The German hawkish official pointed out that economic and inflation risks are tilted to the upside. She hinted that at the December meeting, new economic growth forecasts may be revised upward, with analysts expecting the deposit rate to remain at 2% for the fourth time. Schnabel is the first ECB policymaker to explicitly state that borrowing costs are not only at an "appropriate level" (as emphasized multiple times by President Lagarde and other ECB officials) but have reached the lower bound.