ECB Governing Council member Olli Rehn said that recent rise in inflation is due to “one-off and temporary factors” only. He added there are currently “no signs of a rise in broader price pressures”, and “slack remains high”. Policymakers need to “look through short-term variation in inflation”.
For now, the ECB “need to continue with significant purchases under PEPP”. The program will be conducted in “flexible manner” and “accommodative financing conditions are key to support euro are recovery”. He added that ECB did not discuss the issue of transitioning away from PEPP yet.
