Inflation surges to 10-year high in euro zone

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  • Some inside and outside the bank believe it’s high time that the ECB reduces its monetary stimulus as global supply chain problems push prices higher for all sorts of goods.
  • But uncertainty over the coronavirus pandemic still remains.

FRANKFURT — Market participants are keenly watching the European Central Bank this week as the Frankfurt institution meets to discuss its pandemic-era stimulus amid soaring inflation and solid economic growth.

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Some inside and outside the bank believe it’s high time that the ECB reduces its monetary stimulus as global supply chain problems push prices higher for all sorts of goods. But uncertainty over the coronavirus pandemic still remains.

“Whereas the ECB may moderate the pace of its emergency asset purchases modestly in [the fourth quarter], we do not expect the bank to announce when and how it will phase out its big ‘Pandemic Emergency Purchase Programme’ (PEPP) and whether and to what extent it will beef up its modest standard Asset Purchase Programme (APP) and make it more flexible,” Holger Schmieding, a chief economist with Berenberg Bank, said in a research note.

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www.cnbc.com/2021/09/08/ecb-to-kick-off-its-tapering-debate-as-inflation-surges.html

 

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