Benedict Kukla, chief investment strategist at Indosuez Wealth Management, said
in a report the ECB’s apparent sole focus on an energy supply shock is
surprising. He said the bank has underweighted still-fragile demand and the lack
of drivers for core inflation, and has not fully accounted for tightening in
bond market rates. While the ECB retains credibility on inflation, Kukla warned
there is a risk of over-tightening that could choke a nascent economic recovery.
