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ECB Official Rules Out Second-Round Inflation Effects
Developing
In Short: European Central Bank official Santos Pereira says current inflation levels are not causing second-round effects.
European Central Bank (ECB) official and Governor of the Bank of Portugal, Santos Pereira, stated during the European trading session that there are no current second-round inflation effects.
Pereira's comments come as the ECB continues to monitor inflation levels following quantitative easing (QE) measures implemented during the economic recovery.
He advised France to maintain fiscal prudence, emphasizing the need to keep inflation in check.
Pereira noted that current inflation and core inflation levels are significantly lower than those observed during the 2022 energy crisis.
He also highlighted that prices of other goods are stable, indicating that inflation expectations remain anchored.
The ECB's primary mandate is to maintain price stability, aiming for an inflation rate of around 2%.
What's still developing
- It is undertaken after QE when an economic recovery is underway and inflation starts rising.
Sources
- FXStreetlink