ECB could be tightening policy quicker than markets expect -ECB’s Holzmann

European Central Bank policymaker and Austrian National Bank (OeNB) Governor Robert Holzmann attends a news conference in Vienna, Austria December 2, 2019. REUTERS/Leonhard Foeger

FRANKFURT, Sept 8 (Reuters) – The European Central Bank could be tightening policy sooner than many now expect as inflationary pressures could prove to be more persistent, ECB policymaker Robert Holzmann said in a contribution to the Eurofi Magazine.

“There is the possibility that we may be able to normalize monetary policy sooner than most financial market experts expect,” Holzmann, Austria’s central bank chief said.

“I see potential upward price pressures coming from persisting global supply bottlenecks, mounting labor shortages in several sectors, pent-up demand and higher savings triggering a stronger spending spree, cost effects from effectively implementing climate change policies, and last but not least, higher headline inflation getting entrenched into inflation expectations,” Holzmann added.

Reporting by Balazs Koranyi; Editing by Catherine Evans

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