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EU inflation data yet to show signs of stabilization

Inflation moving above ECB target level for the time being

Speakers - ECB’s De Guindos (Spain) stated that was expecting a strong activity increase in H2. Inflation could be above 2% by end-2021 due to temporary factors. Saw moderation in inflation in 2022. Reiterated stance that best to err on the side of caution on when to begin removing stimulus. - ECB s Elderson (Netherlands; SSM member) stated that banks need to play pivotal role in greening economy. - - Turkey Central Bank (CBRT) Gov Kavcioglu QIR press conference reiterated stance to maintain a tight monetary policy as it would act as a buffer. Increasing global inflation expectations is putting pressure on emerging market currencies.

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