- Raising rates would not lower energy prices. But if high current inflation threatens to lead to a de-anchoring of inflation expectations, we may still need to respond, as our mandate is to preserve price stability
- The implications of the green transition for inflation are very important for monetary policy
- The empirical link between money growth and inflation has weakened over recent decades. Inflation developments depend on the transmission of policy measures to the real economy, which hinges, for example, on the state of the banking sector
- An extended period of high energy price inflation may lead to expectations of higher inflation in the future
- Our economies will benefit from a faster transition to renewable energy sources
- What matters for inflation is the growth in wages over and above productivity growth. We carefully monitor wage developments as they are crucial for the inflation outlook
- Negative rates reflect the low inflation environment before and at the beginning of the pandemic.
- PEPP reinvestments can be adjusted in the event of fragmentation
The line on PEPP reinvestments is important for Italian bonds. Yields there are rising faster than elsewhere in Europe and that's something the ECB won't want to see.
