ECB officials warn of inflation risk

Bloomberg

Some European Central Bank (ECB) officials issued warnings about higher rates of inflation, just a day after agreeing to keep monetary stimulus flowing at an accelerated pace through the summer.
Austrian Governor Robert Holzmann went so far as to say that if euro-area price growth exceeds 3%, then policy makers would need to consider acting. He said the possibility can’t be excluded that temporarily higher prices would drive up wage pressures.
“On inflation, I think that’s giving every governor at the ECB, but also beyond, something to think about,” Holzmann told reporters. “If inflation crosses 3% that would probably mean a rethink of the strategy.”
The Governing Council agreed at this week’s meeting to renew their pledge to run their pandemic bond-buying program at a heightened pace.