Free Trial
RUSSIA

CPI Rises 0.10% WoW from 11-14 Jan, 0.66% YTD

EGB SYNDICATION

Austria triple tranche: Priced

CANADA

USDCAD Continues Post-CPI Climb

EGB SYNDICATION

Greece 10-year: Priced

OPTIONS

Expiries for Jan20 NY cut 1000ET (Source DTCC)

CANADA

BMO & RBC Keep Mar & Apr Liftoff As Base-Case

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access
Sign up now for free access to this content.

Please enter your details below and select your areas of interest.

The spike in euro area inflation has been largely driven by pandemic-related factors that will fade out and in some cases disappear in 2022, Bank of Spain Governor Pablo Hernandez de Cos said in speech Monday, calling for patience and continued monetary accommodation.

While inflation has proved longer lasting than expected, he said there are as yet no indications that Europe is about to enter an inflationary spiral driven by higher end-prices and wage settlements.

There is only a very small likelihood of any inflationary surge such as that which followed the 1970s oil price crisis, he said, though he added: “that episode should serve as a reminder that economic authorities must be careful when finding the necessary balance between providing patient support to the recovery and simultaneously preserving the capacity to act swiftly should it prove necessary.”

As MNI has reported, higher inflation has already spurred more hawkish ECB officials to argue for more restrained monetary stimulus into next year.