- Size of September rate hike depends on inflation expectations
- ECB has always been committed to fight fragmentation
- Fragmentation is a significant worry for the central bank
- ECB is speeding up process to ready a tool against fragmentation
The story in the first half of last year was that inflation will ease going into 2022. That was then pushed back to 1H 2022 and then now 2H 2022. Remember the whole 'inflation is transitory' narrative? That was just about seven months ago. How time flies..
