- We are seeing that inflationary pressures are becoming more broad-based.
- It’s true that the current high inflation is mainly driven by energy prices. But energy is not the only factor
- The euro has mainly lost value against the US dollar. Through the higher cost of imports, this has effects on inflation, which we are closely monitoring. But we do not target the exchange rate.
- At present I don’t see such a spiral whereby rising wages create rising prices and vice versa. However, the data are backward-looking and we need to pursue a forward-looking monetary policy. So we can’t afford to wait until a wage-price spiral has already set in before responding.
- There can be no doubt that we will see higher wage demands if inflation remains so high over a prolonged period.
- I believe that we will be able to end net purchases under our regular asset purchase programme, or APP, at the end of June.
- The lowering of interest rates below zero was uncharted territory, making it essential to move cautiously. This reasoning does not apply when moving in the opposite direction.
- I continue to see positive growth
- In principle, it makes sense to gradually reduce bond portfolios at some point in the future
- Some factors, like digitalisation, could continue to weigh on inflation. But there are other developments, such as the green transition and a possible decline in globalisation, that are likely to increase inflation over the medium term.
This is some hawkish stuff.
