The ECB continues to try to play the 'transitory' card
- Current price pressures reflect transitory factors
- That will fade out over time
- Growth in the euro area has improved significantly
- Important to maintain an accommodative policy stance
And that will be the name of the game until they feel the squeeze of being pushed into a corner. It is going to be interesting to see how this all plays out with the hawks at the central bank considering that base effects and the energy crisis this winter are going to keep upwards pressure on prices until year-end.
More:
- QE will probably end before we hike rates
- Will not comment on the timing of rate hikes
- Some of us do believe at the moment that the forecast of 1.5% inflation in 2023 is too low
- There is debate and discussion to be had
