Global Rates: The ECB and the nasty math of energy prices

European Rates Strategists Fabio Bassi, Francis Diamond, Aditya Chordia and Khagendra Gupta discuss the implications of the recent ECB meeting. The more hawkish ECB delivery was likely prompted by increased inflation concerns and elevated measures of inflation expectations, following the recent spike in energy prices. We discuss ECB tapering in the context of the risks around the growth uncertainty. The policy decision weakens the ECB safety net as asset purchased are tapered to end in Q3, amidst ongoing macro/geopolitical uncertainty and higher supply going forward. We also briefly discuss implications for the upcoming BoE meeting. SpeakersFabio Bassi, Head of European Rates StrategyAditya Chordia, European Rates StrategistFrancis Diamond, UK Gilt and European Inflation StrategistKhagendra Gupta, European Rates Strategist   This podcast was recorded on 11 March 2022. This communication is provided for information purposes only. Institutional clients can view the related report at https://www.jpmm.com/research/content/GPS-4030680-0  for more information; please visit www.jpmm.com/research/disclosures for important disclosures. © 2022 JPMorgan Chase & Co. All rights reserved.