🇪🇺 #ECB Meeting (1) | Lagarde conference was more hawkish than ECB statement as she clearly opens the door to some adjustments.
*It suggests that the governing council is feeling uncomfortable with #inflation.
*It suggests that a hike in 2022 is no longer excluded.
*It suggests that the governing council is feeling uncomfortable with #inflation.
*It suggests that a hike in 2022 is no longer excluded.
🇪🇺 #ECB Meeting (2) | Markets reacted immediately and are now pricing a hike in June.
https://twitter.com/C_Barraud/status/1489238772218798092
🇪🇺 #ECB Meeting (3) | It looks extreme. My view remains that #inflation will be higher than expected but there is nothing in the data right now that suggests it won't normalize from H2.
🇪🇺 #ECB Meeting (4) | This situation is far different from the U.S. or the U.K.:
*Rents are not rising by double-digits
*Wages growth is contained.
*International mobility could recover quickly
*Rents are not rising by double-digits
*Wages growth is contained.
*International mobility could recover quickly
🇪🇺 #ECB Meeting (5) | Add that Eurozone was strongly exposed to the energy shock (~50% of inflation). Officials made errors in managing gas inventories that cost a lot this fall and this winter.
🇪🇺 #ECB Meeting (6) | My hope is that they won't repeat the same mistake. In addition, if geopolitical tensions ease, Eurozone could experience negative base effects from enery later this year.
https://twitter.com/C_Barraud/status/1489244732337258510
🇪🇺 #ECB Meeting (7) | Finally, keep in mind that policymakers made a huge mistake in 2011 and threfore won't rush to implement a turnaround.
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