ECBs Schanabel is speaking and says:
- My view is that some damage done from Iran war will be hard to reverse
- There seems to be a disconnect between the stock market and the global situation.
- Private credit sector in Europe is too small for now to bring in systemic risk.
- If higher energy costs are passed on to prices or wages increase in response that is the sign policy has to react.
- If we wait until wages rises materialize it will be too late
Earlier, Schnabel said:
- Signs of supply chain disruptions are reemerging.
- Rapidly growing shares of European manufacturing firms are planning to increase prices.
- Household inflation expectations are adapting rapidly.
- If energy price shock broadens, monetary policy will need to tighten.
- Prices shocks are likely to feed through the economy faster than in 2021
- Risks have increased in recent weeks
Comments suggest that a tightening by the ECB is in the cards going forward
