European Central Bank (ECB) Governing Council member Pablo Hernandez de Cos said on Monday the rise in inflation rates can be expected to be transitory despite having proved to be stronger and more persistent than anticipated a few months ago.
"In nature and, in the absence of further shocks, inflation should start to subside over the course of the coming year."
"Some uncertainties surround this gradual price normalisation scenario."
"For time being, the second-round effects observed across Europe are subdued."
"Risks to the growth outlook remain tilted to the downside."
"We aim to avoid premature tightening of monetary policy in response to inflation running above the target, when such deviation is deemed to be temporary."
"It can be concluded that we are unlikely to witness interest rate hikes next year or even for some time thereafter."
"In the current context, it is better, in my view, to err on the side of caution when it comes to adjusting our monetary policy."
"I believe retaining PEPP's flexibility going forward would be warranted."
These comments don't seem to be having a significant impact on the shared currency's performance against its rivals. As of writing, the EUR/USD pair was down 0.25% on a daily basis at 1.1288.
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