"We still see inflation moderating next year, but it will take longer than initially anticipated" and "we continue to expect it to stay below our new symmetrical 2% target over the medium term." This was stated by the president of the ECB, Christine Lagarde, speaking at a hearing in the Economic Affairs Committee of the European Parliament.
"The shortage of raw materials, equipment and manpower weighs on manufacturing production, weakening the short-term outlook. Although the duration of supply constraints is uncertain, they are likely to persist for several months and gradually ease only during the course of 2022" .
"Current futures prices indicate a significant easing in the prices of theenergy in the first half of 2022, "says Lagarde.
"Regarding official interest rates, in our forward-looking guide we have clearly explained the three conditions that must be met before rates start to rise. Despite the current jump in inflation, the medium-term outlook remains subdued and therefore is very It is unlikely that these three conditions will be met next year ".
"Even after the pandemic emergency has ended, it will still be important that monetary policy, including the appropriate calibration of bond purchases, supports the recovery across the euro area and a sustainable return of inflation to our 2% target. ".
Thus the president of the ECB at a hearing in the European Parliament, recalling that in December Frankfurt will announce its intentions on the future of the government bond purchase program.
"The challenge is not over yet, the decisions that are made by policy makers will continue to determine the strength of the recovery," he added.
