Central bankers in the euro zone and around the world are debating what their role should be in the fight against climate change.
"Another possibility would be to pursue a more sophisticated 'tilting strategy' under which the ECB could adjust its monetary policy operations more gradually in line with sustainability considerations," Schnabel said.
The central bank's latest projection, part of a regular forecasting exercise coordinated by the European Central Bank, is above the most recent estimate by the Italian government, which forecast growth of 4.5% in April.
The Dow and the tech-heavy Nasdaq were down in morning trading while Europe barely moved either side of the positive-negative line after Asia drifted down slightly.
The pan-European STOXX 600 index rose 0.4pc to a new closing high of 452.57, having earlier hit an all-time high of 452.71. It added 0.8pc for the week.
"If the increase in yields is the consequence of the normalisation of the economy, it's something that is going to part of the broader framework. If there's a recovery going on, if inflation starts to go up and normalise economic activity, then nominal yields will have to go up.