Christine Lagarde, President of the European Central Bank with former Governor of the Central Bank of Ireland, Philip Lane, now chief economist at the ECB, at the Euro at 20 Conferences Convention Centre Dublin last year
Via RTÉ Business:
“Since bottlenecks will eventually be resolved, price pressures should abate and inflation return to its trend without a need for a significant adjustment in monetary policy,” Lane said in a blog post.
He was echoed at a separate event by French governor Francois Villeroy de Galhau.
They were likely trying to dampen market expectations, which are for an early end of the ECB’s bond purchases and rate hikes worth 50 basis points by December.
These were stoked by ECB President Christine Lagarde last week, when she refused to rule out a rate increase this year. Sources told Reuters some policymakers already wanted policy changes at last week’s meeting.
But Philip Lane defended the ECB’s “hold-steady” approach.
“The logic underpinning a hold-steady approach to monetary policy is reinforced if the bottlenecks are primarily external in nature, caused by global disruptions in supply or a surge in global demand,” he said.
Euro zone inflation doesn’t require significant policy tightening – Lane (RTE)
“The priority right now is that we can bring in a range of measures that would cushion the blow for many, many people out there who clearly are suffering the impact of price rises and that is the agenda at the moment.
“The Minister for Public Expenditure and the Minister for Finance are working on ideas around that.”
“We have indicated more broadly that we are looking at charges, we are looking at costs that people have to bear. You will recall last week the Leaving Cert fees were waived, so we are looking at a range of charges that we could reduce costs for people in their ordinary, everyday lives.
“We want to do some measures like we did in the Budget, targeting people on low incomes to weather this particular inflationary cycle.
“We all need to be realistic in terms of what’s achievable.
Taoiseach Micheál Martin this afternoon.
We’re all in this together.
Govt has to plan for ‘medium term’ cost of living increases – Taoiseach (RTE)
Taoiseach Micheál Martin
Via RTÉ News:
Addressing the Fianna Fáil parliamentary party last night, Mr Martin said that the coalition Government is “conscious” about the rising cost of living, and how much of it is energy related.
He told his party’s TDs, Senators and MEPs that they are examining “a range of measures”, including reducing Government charges, in order to enable people to protect their disposable incomes.
…Around the same time, Mr Varadkar told a Fine Gael parliamentary party meeting that the planned €113 energy rebate “isn’t enough” to counter rising energy prices.
He also mentioned the potential of lowering Government fees and charges – saying rising inflation and higher prices means more needs to be done to help families.
That should do it.
Govt may take more action on rising cost of living (RTE)
Minister for Finance Paschal Donohoe at government buoldings yesterday
Via RTÉ News:
Paschal Donohoe said “mechanics” to reduce energy costs for people are being worked on at the moment and he expects they will come before the Dáil very soon.
The Minister said the Government wants to be confident that companies pass the full reduction onto customers.
He added that changes have also been made to social welfare payments, including fuel payments.
Paschal Donohoe said the Government cannot insulate everyone fully from increases because there are many other priorities that need to be delivered.
These include a massive national effort to deal with Covid-19 and a wage subsidy scheme to support employers and employees.
Budget measures helping people cope with inflation – Donohoe (RTE)
Clonsilla, Dublin, this evening.
James McAuley writes:
Having inflated a kid’s pool using the air pump at a garage…
A guy in an inflatable rubber Superman costume distills pure comedy Marmite.
At around 4:17, listen out for the tell-tale b’doing as he parts company with his rubber pants.
Oh yes. We’ve watched it right to the end. Twice.