ECB's Radev says past inflation shocks have left a “durable imprint" and external shocks feeding into price expectations

ECB's Radev's statement about past inflation shocks suggests that previous price increases have not only made a lasting impact but are also influencing current expectations. This indicates a more hawkish stance and may suggest that the ECB is likely to maintain or even tighten its policy to combat persistent inflation. Traders should watch for implications in the euro and fixed income markets as these comments may shift expectations for future rate moves.