ECB Executive Board member Fabio Panetta said the current inflation in Eurozone is bad but also temporary. It’s driven by supply chain disruptions and energy prices which are “bound to be overcome”. He would be among the first in favor to intervene if inflation are becoming more permanent.
But he added, “the central bank is not intervening because if it did, it would create more damage than benefit. It’s like an illness, not all medicines are good for all illnesses.”
