Remarks by ECB president, Christine Lagarde
- But it will take longer to decline than originally expected
- As recovery continues and supply bottlenecks unwind, can expect price pressures on goods and services to normalise
- There is an indication of noticeable easing of energy prices in 1H 2022
- Duration of supply constraints is uncertain though
- Likely to persist for several months then gradually ease during 2022
- Growth momentum moderating to some extent, owing to supply bottlenecks and rise in energy prices
- Undue tightening of financing conditions is not desirable, would represent unwarranted headwind for the recovery
- Conditions for a rate hike very unlikely to be met in 2022
Pretty much rinse and repeat from Lagarde as per the ECB messaging over the past few weeks. The language on inflation may be a little softer on the balance of things but they are still firmly in the transitory camp, so that hasn't changed whatsoever.
Besides that, she maintains that policy will remain accommodative and is pushing back a bit against expectations that the ECB will act next year - at least for now.
