Comments from DeGuindos:
- We are attentive to second-round inflation effects
- There are already some early signs of weakening credit quality in the banking sector
- ECB expects medium-term inflation to remain below goal
- Transition from PEPP to PSPP to take place in 'near future'
- Should try to avoid cliff-edge effects
The bolded is going to be somewhat contentions. We already have Weidmann hinting at a fight. He hints that they agreed to a pandemic emergency plan and that re-naming it something else and continuing on with it after the pandemic isn't honest. The problem for Weidmann is that he doesn't have many hawkish allies.
