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IMF: Not expecting inflation spiral in Europe

 Alfred Kammer, the Director of the European Department at the International Monetary Fund, said on Wednesday that they are not expecting an inflation spiral in Europe, as reported by Reuters.

Additional takeaways

"Inflation driven by energy prices is expected to fade."

"Not expecting second-round inflationary effects in Europe due to slack in the European labour market."

"European Central Bank can react to deeper inflation concerns."

Market reaction

The EUR/USD pair showed no immediate reaction to these comments and was last seen rising 0.12% on the day at 1.1645.

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