ECBs Luis DeGuindos speaking
The ECBs DeGuindos is on the wires saying:
- Rising energy costs are weighing on growth by limiting purchasing power of households
- To prevent the materialization of the medium-term risks that we have identified, it is essential to maintain the momentum of the recovery and avoid scenarios that could put our price stability objective in jeopardy
- Having a strong sustained and broad-based recovery is at the center of our policy concerns.
- By ensuring favorable financing conditions, monetary policy continues to pave the way forward
- Supply-side shortages may dampen activity while pushing up prices adding to the uncertainty in the outlook for growth and inflation
- Now could be the time to consider starting to gradually implement country specific macro policies
- Supply-side shortages may dampen activity while pushing up prices adding to the uncertainty in the outlook for growth and inflation
- The current phase of higher inflation reflecting in part the aforementioned increase in energy prices and supply constraints, could last longer than expected.
- Inflation expectations are not the anchored
- Drivers of inflation are temporary in nature.
- 2021 wage bargaining process was delayed, could make deflationary process slower.
- Will have to make decisions mainly in December.
- Flexibility allows to reduce pace of purchases
