ECB Governing Council member Gabriel Makhlouf warned in a Bloomberg TV interview, “we must be very vigilant of the risks out there.” He referred to the risk of persistently high inflation sue to supply bottlenecks.
“That’s the risk that we at the ECB need to be very cautious of and very aware of and ready to respond to if it happens,” Makhlouf said. “Right now I don’t think we should be looking to raise rates or respond to transitory inflation.”
The crisis program “was set up for an emergency at the start of the pandemic. As we see the emergency disappear there are logical consequences to that particular program,” Makhlouf said. “On the other hand there’s a long discussion to be had at the ECB, there’s a lot of uncertainty around with what’s happening in economies.”
