Remarks by ECB policymaker, Olli Rehn
- Some components are partly more persistent than previously thought
- If elevated inflation lasts much longer, it will likely have effect on expectations
That's a bit of a softer stance but it reaffirms that policymakers can only do so much to fight against what they know is inevitable and undeniably the truth of the situation. The worst part is that they don't exactly have the tools to counteract the root of the problem. BOE governor Bailey's remarks last month still outlines it perfectly:
Monetary policy cannot solve supply side shocks. Monetary policy cannot produce computer chips, it cannot produce wind, it cannot produce truck drivers.
