By Marta Vilar – MADRID (Econostream) – European Central Bank Governing Council member Olaf Sleijpen said on Tuesday that policymakers will have more information on potential second-round effects from the energy price shock by the 30 April meeting, though the overall picture will remain incomplete.
Speaking at a press conference presenting the annual report of De Nederlandsche Bank, which he heads, Sleijpen said the ECB could “act if we see second-round effects,” adding that more evidence on this front should be available by April.
Comparing the current situation with the 2022 inflation shock, he noted that inflation was much lower at the time, whereas “[e]verybody is more alert now,” making it easier for the shock to “ripple through the economy.”
Sleijpen highlighted inflation expectations and producer prices as important indicators for the April meeting, but noted that incoming data would still be “limited” and that “the complete picture will not have emerged” by then.
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