ECB's Schnabel says a recession alone would not be enough to control inflation, growth is going to slow and a technical EZ recession is possible. Inflation concerns from before the July hike have not alleviated, outlook is unchanged.
- Re. fragmentation: markets are more stable now, but volatility is elevated and liquidity is low.
- Number of indicators point to a de-anchoring of inflation expectations. Short-term inflation could still accelerate.
Reaction details (06:39)
- In reaction to the comments from Schnabel which suggested that the ECB will need to keep fighting inflation with additional rate hikes as "a number of indicators point to a de-anchoring of inflation expectations", Sep'22 Bund future fell from 154.37 to 154.22 over the course of five minutes.
18 Aug 2022 - 06:30- Fixed IncomeImportant- Source: Newswires
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