ECB president, Christine Lagarde, spoke to CNBC in an interview yesterday with the transcript just released today
- A lot of the increase is to do with energy prices
- VAT in Germany also played a role, adding to another base effect
- Adjustment to PEPP purchases in Q4 is not tapering, but a recalibration
- There is a shortage of supply relative to much higher demand
- But things will fall into place as new sources of supply will be identified
- Euro area's exposure to Evergrande would be limited
- ECB is looking into the situation; financial markets are interconnected
- Full transcript
There isn't anything that we haven't already heard from Lagarde and her peers since the ECB policy meeting earlier this month. She did touch on Evergrande a little, saying that any impact towards Europe would be rather limited so there's that.
