With the world's central banks paying close attention to how to respond to inflation concerns, the European Central Bank reiterated its traditional view that inflation is temporary on the 28th, and is now on a large scale. Decided to continue monetary easing.
The Central Bank of Europe held a board meeting on the 28th to discuss monetary policy in 19 euro area countries such as Germany and France, and all the current status of large-scale quantitative easing such as the current negative interest rate policy and the purchase of government bonds. I decided to keep it as it is.
At a press conference after the board, Lagarde said that the current rise in prices was "due to soaring energy prices and a sharp recovery in demand due to economic activity. It seems to be longer than initially expected, but will fall next year." He said that the rise in prices was temporary and for the time being, he reiterated the conventional policy of accepting it.
Among the world's central banks, the US Fed's Federal Reserve Board is expected to formally decide to reduce the scale of quantitative easing next week. With a series of moves, the Central Bank of Europe just decided last month to slow down the pace of asset purchases.
However, in Europe, the economic outlook is becoming more cautious due to the turmoil in the supply chain, and the European central bank is likely to be forced to steer difficult policies.