- A number of policymakers argued that inflation was at risk of overshooting expectations
- It was cautioned that a "higher for longer" inflation scenario cannot be ruled out
- It was emphasised that ECB should stress willingness to adjust policy in either direction to stabilise inflation
- A growing number of policymakers fear that even if inflation is temporary, it may be more persistent and enough to spur wage growth and lift consumer price inflation above the long-term trend
I reckon you can sort of get a sense of that from recent remarks by ECB policymakers. But the accounts certainly reveal a deeper divide on the outlook and how they should proceed with policy perhaps. I'd still argue that the base and majority of members will fall in line to advocate keeping policy as it is but if inflation figures do not settle down by mid-year, there is going to be a more heated debate internally within the ECB on the matter surely.
