Governing Council member Ignazio Visco said even if the inflation pressures in Eurozone “may last for some months and well during the next year”, it’s still “largely transitory”. He added that market expectations for rate hike in late 2022 were “not that consistent” with ECB’s forward guidance.
Visco also said “flexibility should remain” after the emergency PEPP program as. “We certainly have to discuss how to adjust our purchase programs,” he said. “It will help against unexpected shocks, and it will help to avoid fragmentation that may rise again.”
