Comments by ECB governing council member Ewald Nowotny

  • Doesn't see a recession in Europe
  • Uncertainty is high
  • ECB is data-driven

For the time being, core CPI is holding steady but headline CPI is slowly trending downwards. I reckon arguing for a case that core inflationary pressures will accelerate is a bit far-fetched for now given that it didn't tick significantly higher throughout the whole of last year.

But let's see what happens down the road. Either way, waning economic growth sentiment may just do enough to put the ECB off from normalising monetary policy anyway.