Remarks by ECB vice president, Luis de Guindos
- Must avoid making temporary inflation jump permanent
The remark on inflation is more to the fact that this isn't quite the kind of inflation that central bankers want as it isn't "natural".
The fear for central banks is that if they get sucked into removing accommodative policy, what would happen when supply/demand conditions balance itself out eventually?
That's all the more reason why the ECB will keep trying to 'outdove' the Fed as much as they can and Powell & co. has certainly made it easy in the past two to three weeks.
