Remarks by ECB president, Christine Lagarde
- There are some factors that could lead to stronger price pressures than anticipated
- But there are limited signs of such a risk so far
- ECB continues to view this inflation upswing as largely temporary
- Growth outlook continues to be uncertain, dependent on pandemic evolution
- We remain committed to preserving these favourable financing conditions
- Necessary for a robust recovery to restore inflation to pre-pandemic level
This is a roundabout way of saying that they will not be looking to tighten policy whatsoever even as inflation pressures are increasing, as they still view it as transient.
Adding to that, expect the so-called baseline scenario to include stepping up APP purchases eventually as they would look to ease the transition post-PEPP next year.
