MILAN (Reuters) – Euro zone companies are starting to absorb high wage pressures via their profits and the risk that inflation expectations become de-anchored from the 2% target has receded, European Central Bank policymaker Isabel Schnabel said on Friday.
Schnabel, an influential voice on the ECB’s 26-member Governing Council, also said she was increasingly confident the euro zone economy was heading for a “soft landing”, meaning that inflation could be tamed without inducing a recession.
(Reporting by Valentin Za; writing by Balazs Koranyi; editing by Andrew Cawthorne)
