ECB’s de Cos: Supply chain woes, rising raw material costs affect negatively economic recovery pace
|The European Central Bank (ECB) Governing Council member and Spanish central bank chief Pablo Hernandez de Cos said Monday, “supply chain problems and rising raw material prices affect negatively economic recovery pace.”
“Recent developments anticipate a significant downward economic outlook revision for 2021,” said de Cos.
Additional comments
“High level of uncertainty over how households will spend excess savings during the pandemic.”
“Likely we'll keep observing relatively high inflation rates in coming months.”
“High commodity prices have transitory nature, though we cannot rule out price hike will persist over coming months.”
“High energy prices may persist through winter as oil and gas storage is relatively low.”
Market reaction
EUR/USD is trading better bid near 1.1660 amid ongoing US dollar weakness and mixed German IFO survey.
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