ECB policymakers see risk of inflation exceeding projections – Reuters

European Central Bank (ECB) policymakers see the risk of inflation exceeding their projections, Reuters reported on Thursday, citing sources familiar with the matter.

Additional takeaways

"Some see 2022 at or 2% above target."

"Higher eurozone inflation firms up the case to end PEPP bond-buying next march but many are open to increased buys via APP bond-buying to avoid cliff effect."

"ECB policymakers appear more willing to exercise flexibility over a capital key; any change to issuer limit change to face a bigger fight."

Market reaction

The EUR/USD pair showed no immediate reaction to this headline and was last seen gaining 0.3% on the day at 1.1720.