ECB Schnabel: Fears of return of stagflation appears unfounded

ECBs Schnabel speaking.

PCBs Schnabel is speaking saying:

• Fears of return of stagflation appears unfounded
  
• Reflation not stagflation remains the defining theme of our times
  
• More persistent supply bottlenecks imply that part of the increase in production and demand that was expected for this year and next may only materialize later on
  
• Economic activity globally and in the euro area has started to moderate
  
• Uncertainty has increased around the pace and extent of the slowdown in inflation
  
• Here are concerned that the slowdown it may be more abrupt and more enduring
  
• Monetary policymakers need to focus on the entire range of possible outcomes to ensure that they will be able to deliver on their mandate
  
• This means avoiding the mistake of premature tightening of monetary policy in response to a temporary and possibly short-lived inflation spike
  
• Our analysis suggests that these concerns are largely unwarranted
  
• On the other hand it means keeping a watchful eye on the upside risks to inflation and acting if needed
  
• If we are serious about fighting climate change, the green transition will need to bring about a measurable further rise in the price of carbon
  
• There is less agreement on the persistence of many of these price pressures and what they mean for appropriate response on monetary policy 

The comments are along the lines of staying steady with regard to rates
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November 18, 2021 at 02:03AM

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