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.