Inflation Draws Near Bank’s Target, 2% Over Medium Term, Says ECB Member

Source: CNBC.

The European Central Bank is close to reaching its inflation target of 2% over the medium-term as the market participants await a new policy meeting in December. Euro Stoxx 50 down -0.15%, EUR USD down -0.14%

• ECB observers are projecting the central bank to develop plans on how to adjust monetary stimulus after its meeting next month.
• In October, ECB President Christine Lagarde stated that the Pandemic Emergency Purchase Program (PEPP) will end in March as earlier planned.
• The ECB is set to revise its growth and inflation projections in December to support the decision with the central bank on the stimulus package needed in the euro area.
• Officials of the central bank are downplaying expectations that there could be an interest hike in the remaining months of 2022.
• The ECB still holds that the price pressures will drop in 2022 and monetary policy will remain somehow accommodative.