Remarks by ECB president, Christine Lagarde

  • Price pressures could become more persistent if supply bottlenecks last longer
  • Or if wages rise more than currently anticipated
  • But there is no evidence of significant second-round effects from wages
  • Sees risks surrounding euro area growth outlook as being broadly balanced

Is anyone else sick of all the transitory talk yet? The ECB is pretty much put between a rock and a hard place here as they can't acknowledge more sticky inflation as that would defeat their forward guidance but they also might be forced to do something if price pressures continue to surge higher going into next year.