- Since inflation will be higher than previously forecast, raising rates would be slightly behind the curve rather than ahead of it
- The public sees that when inflation rises, it is up to the ECB to raise rates
For someone who wants the key policy rate to be zero by year-end, the remarks above aren't entirely convincing. I'm not sure if he is alluding to playing catch up in a more aggressive manner or if he is saying that since the ECB is already behind the curve, rate hikes won't matter. But either way, the governing council as a whole is unlikely to act with much urgency in my view.
