European Central Bank Executive Board member Isabel Schnabel stated on Thursday that the ECB still needs to continue raising interest rates due to persistently high energy costs, adding that a ceasefire in the Middle East does not mean policymakers can lower their guard.

In an interview with the German newspaper Die Zeit, Schnabel remarked, "From today's perspective, we need to raise interest rates further to bring inflation back to our 2% target in the medium term. However, the extent and timing of further measures will depend on the evolution of the conflict, the economy, and inflation."