European Central Bank Executive Board Member Isabel Schnabel reiterated on Thursday that the current rise in inflation can be largely attributed to temporary factors, as reported by Reuters.
Additional takeaways
"Current spike owes much to same factors that pushed down inflation earlier."
"More durable effect comes supply chain disruptions."
"Reopening of economy has pushed up service inflation."
"Chances are high that above-target inflation will fall back."
"Premature to assume prices will entirely subside next year."
"No indication that elevated inflation rates becoming entrenched."
"Recent developments show investors, forecasters internalising forward guidance."
"Current inflation driven by pandemic-related factors that can be expected to phase out in next year."
"Overreacting to such factors could be harmful."
"Uncertainty as to how persistent factors could be."
"Structural factors like globalisation will affect policy but direction unclear."
Market reaction
The EUR/USD pair showed no immediate reaction to these remarks and was last seen trading flat on the day in the 1.1550 area.
