ECB's Holzmann: The central bank is in a dangerous zone as inflation concerns rise

Commenting on the inflation outlook, the European Central Bank (ECB) policymaker Robert Holzmann said that the central bank is in a “dangerous zone” as inflation concerns accelerate.

Key quotes

“Too early to talk about ending PEPP.”

“PEPP will end in March next year unless a new virus wave occurs.”

“PEPP was designed to be a temporary instrument.”

On Friday, Holzmann said that if inflation went over 3% that would lead the central bank to a re-think of strategy.

Market reaction

EUR/USD is off the lows but maintains its range play around 1.2100, little changed on the day.

• Lagarde speech: It is too early to debate the end of PEPP purchases