Comments from ECB board member Isabel Schnabel
- Current rise can largely be attribute to temporary factors
Schnabel remains firmly on team transitory.
Just as she says that, US Treasury yields pop to the highs of the day, up 2.8 bps to 1.5537%.
More:
- It's premature to assume prices will entirely subside next year
- Chances are that high above-target inflation will fall back
- Reopening has pushed up services inflation
- Supply chain disruptions could be a more durable effect on prices
- Pandemic may have altered behaviour
- Overreacting to current inflation dynamic could be harmful
- There's some uncertainty as to how persistent some of the factors could be
Despite her transitory stance, you can see that central bankers are all focused on the upside risks. That gives you a sense of where their heads are at, despite the transitory formal forecasts.
