ECB's Panetta: Does not see signs that inflation path is shifting upwards
Remarks by ECB board member, Fabio Panetta, in an interview
Those are some heavy words by Panetta. It seems like there has been a bit of a change in attitude by the ECB as of late.
- The risk of providing too little stimulus is high
- It is premature to withdraw stimulus measures
- The conditions today do not justify reducing pace of PEPP purchases
- A discussion about phasing out PEPP is clearly premature
- We are now seeing an undesirable increase in yields
They were quite comfortable to talk about tapering a few weeks ago but now it is all about saying that they aren't comfortable with reducing the pace of PEPP purchases. Even Panetta's remark on yields strikes a contrast to what we heard last week here.