High inflation looms over European Central Bank meetingInflation has been running high in the eurozone but the ECB has so far held off adjusting the support for the economy it introduced at the outset of the coronavirus pandemicFRANKFURT - Rising eurozone inflation provides the backdrop for the meeting of European Central Bank (ECB) governors Thursday, with markets hoping for hints when policymakers might start easing their massive pandemic-era stimulus. "We are more worried about the inflation rate being too low in the medium term rather than too high," Isabel Schnabel, a member of the ECB's executive board, said last month. The ECB will on Thursday also unveil the latest quarterly growth and inflation forecasts, but analysts expect few surprises. However, several ECB board members have recently signalled their openness to adjusting the pace of the emergency bond purchases. "If inflation and the economy recover, then there will logically be a gradual normalisation of monetary policy, and of fiscal policy too," ECB vice president Luis de Guindos told a Spanish newspaper.

Source: Bangkok Post September 06, 2021 02:48 UTC