Recently, Mary Pieterse-Bloem, Professor of Financial Markets at Erasmus School of Economics, appeared on an episode of BNR Nieuwsradio about, among other things, the opening of the figures season. Together with Simon van Veen, fund manager of the Sustainable Dividend Value Fund, she discusses the tricky issue of inflation for the European Central Bank (ECB).
The professor begins her talk by stating that inflation is still above the ECB's target. She especially hopes that Philip Lane, Member of the ECB’s Executive Board, will look further ahead to meet the ECB's inflation targets. However, it must be asked whether those targets are realistic, Pieterse-Bloem said.
The choices that the ECB is facing are very difficult. Indeed, there is a lot of uncertainty, including for investors. Even in previous times of high inflation, the ECB targeted an inflation rate of around two per cent. It is therefore questionable whether they would adjust their target now. Should they not do so, tough measures will once again be needed to curb inflation. A tough choice for the central bank, the professor concludes.
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You can listen to the full episode from BNR Nieuwsradio, 17 October 2023, here.