ECB's Schnabel says markets may be underestimating inflation: Bloomberg

Financial investors may be underestimating the persistence of inflation in the euro zone, European Central Bank board member Isabel Schnabel said in an interview published on Friday.

"Markets are priced for perfection," she told Bloomberg.

"They assume inflation is going to come down very quickly toward 2% and it is going to stay there, while the economy will do just fine. That would be a very good outcome, but there is a risk that inflation proves to be more persistent than is currently priced by financial markets.