ECB’s de Cos: ‘We at the ECB Remain Confident That Inflation Expectations Are Anchored’

30 August 2023

By David Barwick – FRANKFURT (Econostream) – European Central Bank Governing Council member Pablo Hernández de Cos on Wednesday said that the ECB was confident that inflation expectations were anchored.

In remarks following a speech at the Annual Congress of the European Economic Association in Barcelona, de Cos, who heads Banco de España, said it was crucial for market-based inflation expectation measures to take the risk premium into account.

The 5-year, 5-year forward inflation expectation rate was between 2.5% and 2.6% at the moment, but with the risk premium removed, then inflation expectations could actually be seen to be much closer to 2%, he said.

‘And this is why we at the ECB remain confident that inflation expectations are anchored’, he said.