Remarks by ECB policymaker, Pablo Hernandez de Cos
- That despite proving to be more persistent than anticipated a few months ago
- In the absence of further shocks, inflation should subside in the coming year
- Some uncertainties do surround this gradual price normalisation scenario
- Risks to growth outlook remain tilted to the downside
- ECB aims to avoid premature tightening of policy
- ECB unlikely to go with rate hikes next year or even some time thereafter
This is all nothing new from de Cos as it reaffirms the message that the ECB has been repeating for quite some time now. As mentioned before, they aren't really in a position to bargain with the market as they will seek to raise APP purchases next year.
