Trial now
BONDS

Gilt/Bund spreads widest since 2019

EGB OPTIONS

Large Bund put spread

EQUITIES

Big selling hit Futures, on the European cash open

Sign up now for free access to this content.

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

Euro area inflation is extremely unlikely to permanently exceed 2% as a result of the ECB's current monetary policy setting, Executive Board member Isabel Schnabel said in a speech Monday, thought the combination of expansionary fiscal and monetary policy arising from the Covid-19 crisis may "finally chart the path out of the low interest rate environment."

But the ECB is "diligently monitoring" whether its forecasting assumptions, according to which inflation is projected to reach 1.5% in 2023, underestimate the possibility of higher inflation in the years ahead. "The real question is whether we can reach our inflation target of 2% any sooner than we are now forecasting." Schnabel said.