ECB Governing Council member Robert Holzmann said in a conference, “the risk of over-tightening seems dwarfed by the risk of doing too little.”
“Monetary policy must continue to show its teeth until we see a credible convergence to our inflation target,” he added.
Holzmann also hailed that the central bank’s timely tightening helped keep inflation expectation anchored, but people were still feeling the impact. “Ultimately, the losses we as euro-area policymakers incur by consistently missing our inflation target come at our own peril.”
