ECB's Holzmann: ECB in a 'dangerous zone' as inflation concerns rise

Remarks by ECB policymaker, Robert Holzmann

• Too early to talk about ending PEPP
• PEPP will end in March next year unless new virus wave occurs
• PEPP was designed to be a temporary instrument

The talk about PEPP isn't anything new but the headline suggests that there seems to be some acknowledgment that perhaps they may need to address the inflation debate.

It is still early but if the trend keeps up through to Q3 and perhaps Q4 this year, then ECB policymakers will surely start to feel more uncomfortable.