ECB's Rehn: No signs of a rise in broader price pressures

Remarks by ECB policymaker, Olli Rehn

• PEPP will be conducted in flexible manner to help counteract disinflationary effects
• Also to support growth
• Accommodative financing conditions are key to support euro area recovery
• Recent rise in inflation is due to one-off and temporary factors
• Currently no signs of a rise in broader price pressures, slack remains high

They are still trying to play down the inflation debate for now, surely fearing any perceivable shift in market expectations before the Fed actually does.

But as long as the data continues to point higher, there's only so much they can deny.

The big question is what happens if this inflation driven by supply shortages persist for far longer than policymakers expect. Can they keep up with this same rhetoric for let's say, another year? Hmm.