ECB likely to look through rising inflation

May’s inflation data were a little stronger than we and the consensus had expected, and inflation looks set to keep rising in the second half of the year. At next week's ECB meeting, we think that policymakers will drop their pledge to purchase assets at a "significantly" faster pace than in Q1, replacing it with vaguer language to maintain favourable financing conditions.

Subscriber content

Read this in full, free

Start a free trial and use one of your 10 free starter credits to unlock this piece.


Free. 10 articles. No card required.
By completing this form you are agreeing to our Terms and Conditions for the provision of a free trial of Capital Economics' services. We take your privacy seriously and will not share your details with others without your consent. By providing your details, including your email address, you are consenting to Capital Economics sending you macroeconomic commentary and analysis. You can unsubscribe at any time. See our Privacy Policy for more information.

Already a client or trialist? Log in to read this.