ECB's Lagarde: Many of the causes of higher prices are temporary

Author: Justin Low | Category: Central Banks

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.
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