It European Central BankIt was decided that Thursday’s decision to maintain its interest rates and its Monetary Policy stance in spite of inflationary pressures would not be changed.

In September, the central bank announced that it would reduce its purchases of bonds due to rising consumer prices. At 3.4%, the inflation rate in the eurozone was at its highest level in 13 years.

The ECB President was at the time Christine LagardeIt was clear that this was a calibration, not tapering. Because the ECB thinks that rising inflation is temporary, and will recede throughout 2022.

The central bank is not always right. Speaking to CNBC on Wednesday, James von Moltke, chief financial officer at Deutsche Bank, said that inflation “will be more than transitory.”

He said that supply chain disruptions can be normalized if there are good reasons. “But again we are witnessing corporate clients telling us that we see more persistence of the inflationary pressures for their businesses than would be expected,” he said.

ECB Watchers expect Lagarde, against all this backdrop. announce a formal tapering in December.

The central bank’s Covid-19 stimulus program — known as the Pandemic Emergency Purchase Program or PEPP — is due to end in early March next year. Analysts expect that the stimulus will be adjusted in March.

Some people have noted that although the ECB is likely to continue buying bonds from governments, it will do so through less flexible programs.

Market players also believe the ECB underestimates inflationary pressures when it comes down to interest rates. They will likely announce a rate increase before next year.

Philip Lane, the Chief Economist of the ECB, stated that the opinion is not consistent with what the bank had been guiding markets. The ECB stated previously that they would not increase interest rates if inflation is below 2% over the medium term. The bank doesn’t expect consumer prices to remain at that level for long periods of time in its forecasts.

The ECB foresees inflation at 2.2% in 2021, 1.7% in 2022 and 1.5% in 2023 — thus below its 2% target. These forecasts will be updated by the bank in December.

This story is being updated as it’s breaking.