ECB’s Schnabel says climate change is shaping monetary policy

Schnabel's framing matters because it moves climate from a financial-stability or supervisory topic into the core inflation debate, where it can shape how the ECB reads supply shocks. The audience is less crypto than macro: anyone pricing euro-area rate paths now has to weigh whether repeated weather-driven output and infrastructure damage look like transient shocks or a persistent upward drag on prices. Whether other ECB officials echo this supply-side reading — and whether it shows up in staff forecasts rather than speeches — is the open question.