- In purdah period, comments not intended to reflect monetary policy decision at July meeting
- Upside inflation risks in particular from energy prices
- Essential recent rise in inflation does not give rise to broad-based inflationary pressure
- Risks to medium-term inflation outlook are on upside
- Liquidity ample, could feed inflation pressures
- Current monetary policy is accomodative
- Strong vigilance warranted on inflation
- Ready to act in firm and timely manner on inflation
Pretty hawkish stuff. Nothing to disuade me from my belief that ECB will be hiking rates next week. EUR/USD up slightly at 1.4518. Kinda slow, ain’t it…….
And there’s more:
- Would benefit from macro imbalances framework that detects problems early
- ECB always made clear that best way to deal with problems is to stick to fiscal repair plans
- Advise against all concepts that are not purely voluntary
- Need to avoid credit event, default, selective default
- Surprised by narrow view of private involvement, privatisation a good way to mobilise private capital
- On French Greek debt proposal, we don’t yet have a position from governments that we can examine
- Several concepts being examined
