• ECB’s Weidmann warns inflation may pick up faster than expected

Market news

9 August 2021

ECB’s Weidmann warns inflation may pick up faster than expected

Bloomberg reports that ECB Governing Council member Jens Weidmann warned that inflation in the euro area could pick up faster than expected, and urged not to drag out the institution’s pandemic bond-buying program.

Weidmann will “urge to also keep a close eye on the risk of an inflation rate that is too high and not just look at the risk of an inflation rate that is too low,” he told German newspaper Welt am Sonntag.

The ECB expects inflation to average 1.9% in 2021, mainly reflecting temporary factors, before falling to 1.5% and 1.4% in 2022 and 2023. While underlying price pressures should strengthen as the economy recovers, the current outlook foresees inflation well below the ECB’s goal of 2%.

Weidmann also said the ECB’s emergency asset purchase program, known as PEPP, must end when the Covid-19 crisis is over.

Market Focus
Material posted here is solely for information purposes and reliance on this may lead to losses. Past performances are not a reliable indicator of future results. Please read our full disclaimer
Open Demo Account & Personal Page
I understand and accept the Privacy Policy and agree to my name and contact details being used by TeleTrade to contact me about this.