ECB's Schnabel: ECB needs flexibility to reverse monetary policy if necessary

The European Central Bank (ECB) should not prefer the so-called "green assets" in its bond buying programme, incoming ECB board member Isabel Schnabel told the German newspaper Boersen-Zeitung on Monday.

"I would find it rather problematic if the ECB were to favour green bonds as part of its bond purchase programmes," Schnabel explained, per Reuters. "We should not forget that the central bank needs the flexibility to reverse monetary policy if necessary."

Regarding the ECB's inflation target, Schnabel noted that she saw little value in changing the target or creating a target range.