ECB's Lane: evidence suggests no broad de-anchoring of medium-term inflation expectations

Comments from the ECB chief economist have just been published. Highlights:

• Market-based indicators suggest that inflation will return to levels compatible with our target in the course of 2024
• Three-year-ahead inflation expectations of households have risen above target
• We remain attentive to the spread between different money market rates as well as collateral scarcity concerns
• Evidence overall suggests that further progress in bringing inflation towards our aim can be attained by ensuring the appropriate level of slack in the economy, provided inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term expectations remain sufficiently well-anchored
• ECB model-based decompositions of financial asset price movements across the United States and the euro area point to a prominent role of US monetary policy tightening in driving the increase in euro area yields, the correction in euro area equity markets, and the recent euro depreciation
• ECB staff analysis indicates that a Fed tightening elicits large contractionary effects on real activity and eventually inflation in the euro area.
• Full text

There's no signal on monetary policy here but Lane will be doing a 'fireside chat' at 2 pm ET.