By David Barwick – FRANKFURT (Econostream) – European Central Bank Governing Council member Olaf Sleijpen said Thursday that medium- and longer-term inflation expectations remained well anchored despite a persistent energy shock, while he did not expect second-round inflation effects.

Speaking at the Istanbul Economic Forum, the Dutch central bank governor said the energy shock was “quite persistent.”

Sleijpen said longer-term inflation expectations remained anchored around the ECB’s 2% target, while households’ expectations for inflation in the near term had risen.

He said there was a distinction between financial markets and professional forecasters on the one hand and households and businesses on the other when looking at the immediate inflation outlook.

Household expectations were less firmly anchored, Sleijpen said, while businesses stood somewhere between households and financial markets and professional forecasters.

He nevertheless said he did not expect second-round inflation effects from the energy shock.

Sleijpen was speaking on a panel on the strategic outlook for the global economy alongside Banque de France Governor Emmanuel Moulin and Saudi Central Bank Governor Ayman Al-Sayari, moderated by Turkish central bank Governor Fatih Karahan.