European Central Bank (ECB) Executive Board member Isabel Schnabel told Bloomberg on Tuesday that upside risks to inflation remain unabated, and interest rates must be raised further, given the Middle East conflict pushing up energy costs and the Eurozone economy consistently outperforming expectations. She emphasized that at current policy rate levels, it would be difficult for inflation to return to target in the medium term, and acting slowly would only necessitate larger tightening in the future. The Eurozone's Q2 economic growth reached 0.4%, and July inflation accelerated to 2.9%.