ECB Executive Board member Fabio Panetta said in a speech, “the likelihood that demand in the euro area will be strong enough to test the supply constraints of the economy – beyond short-term bottlenecks – does not look as high as in the United States.”.
Eurozone inflation “will rise this year” he added, “but this will be a temporary increase”. Policymakers do not see ” convincing signs that this upward movement will translate into a sustained inflationary process.” Also, “the risk of second-round effects remains limited, as the conditions for them to emerge are not yet in place.”
