ECB's de Guindos: Inflation will continue to pick up this year, expects that it will fall back in 2022

Remarks by ECB vice president, Luis de Guindos, in an interview

• Future policy decisions depend on how economy, inflation develop
• Have to decide on PEPP purchases for the last quarter in September
• Inflation will continue to pick up in 2021
• Baseline scenario is that it will fall back in 2022
• If inflation and economy recovers, logically there will be a gradual normalisation of monetary and fiscal policy

He's still sticking with the view that the surge in inflation is largely more transient but compared to previous remarks, I'd say that the above is less assuring.

In any case, I'd still expect the ECB to brush all of the latest developments aside this month so we'll get a better sense of how their patience is being tested in Q4.