More actions must to curb price expectations: ECB

Bloomberg

European Central Bank (ECB) Governing Council member Joachim Nagel said additional measures are needed to curb rising expectations of future prices and return inflation to the 2% goal.
“Our monthly surveys of firms and households are showing a significant increase in long-term inflation expectations,” Nagel said in an interview with the Zeitschrift für das gesamte Kreditwesen. The ECB raised interest rates by 250 basis-points last year and officials have said more hikes are to come. President Christine Lagarde said that allowing inflation to become entrenched “would be even worse.”
Nagel echoed that sentiment, saying it would be wrong to act too hesitantly now out of fear that higher borrowing costs could hurt economic growth. “Then we would be forced to tighten policy all the more sharply further down the line, thus placing even more of a strain on the economy,” Nagel said.