ECB's Muller says EZ inflation could be above target next year, longer term projections could be raised, inflation will take longer to come down than expected, with risks to the upside; each pandemic wave has lower impact on economy

• Wise not to commit to specific level of purchases for more than a few quarters ahead.


• Not obvious that ECV should be adding to APP purchase volumes beyond March.

Analysis details (13:03)

• In line with the overnight FT report which suggested ECB policymakers are said to be reassessing the extent of their commitment to extra stimulus. Recent events have led to doubts among Governing Council members, which has been forecasting for months that inflation would fall back below its target and justify the continuation of stimulus. A policymaker added that they would be very uncomfortable committing to anything beyond end-Q2.


• Also echoes comments from Kazimir who ECB's said inflation risks are skewed to the upside; APP will be the key instrument in the future, important that ECB does not tinker with APP, and should not make too long commitments on asset purchases.

07 Dec 2021 - 13:00- Fixed Income- Source: Newswires