ECB Governing Council member Pablo Hernandez de Cos said “risks to inflation are tilted to the upside in the short term.” Recent data on Recent data on inflation has shown surprising upwards trends both in headline inflation and core inflation. He added, that the level of uncertainty around inflation is very high also due to geopolitical risks.
De Cos emphasized that more than ever it is necessary to keep all options open on monetary policy. But for now, ECB policymakers are sticking to the sequencing, starting first with tapering, before raising interest rate.
He added, that the next move on monetary policy is clear but will be gradual and depend on data.
