ECB’s Panetta: Asking ECB to bring down high inflation in near term would be “extremely costly

European Central Bank (ECB) executive board member Fabio Panetta warned that asking the central bank to bring down high inflation in the near term would be "extremely costly.”

Additional comments

ECB not seeing any de-anchoring of inflation expectations.

Quarter-on-quarter growth rates will be very low this year and war could bring them into negative territory.

Policy action now against inflation risks crashing the economy.

Would need to massively suppress domestic demand to bring down inflation.

It should be governments who should help mitigate the crisis by providing subsidies, reducing taxes.