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- ECB's Governing Council member Makhlouf: Temporary inflationary effects are expected to dissipate in 2022
ECB's Governing Council member Makhlouf: Temporary inflationary effects are expected to dissipate in 2022
- Growth across euro area has improved strongly since the pandemic
- Inflation is likely to weaken again to levels below 2% over the medium-term
- There is, however, considerable uncertainty about the persistence of price pressures
- Pandemic is bringing about structural changes in our economy
- It will be important to maintain an accommodative monetary policy stance for some time
- Raising interest rates in response to a temporary rise in prices would be harmful as we are trying to nurse the economy back to health
- With correct monetary and fiscal policies in place, a sufficiently strong demand-driven recovery should see inflation return to 2% over medium-term
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