Just as I have been observing recently, Bloomburg reports The European Central Bank (ECB) is seriously considering turning interest rates negative. (article)
"Policy makers would reduce the rate for commercial lenders who park excess cash at the ECB to minus 0.1 percent from zero, said the people who asked not to be identified because the talks aren’t public. It would be the first time the central bank has adjusted interest rates by less than a quarter of a percentage point. The concept, which has been discussed by Governing Council members, doesn’t yet have a consensus, the people said."
This reveals their inflationary expectations which they have likely been considering in private for some time. I have been asked about this increasingly over the last 12 months, as the perceived difference between real and nominal inflation widens. Part of the problem I think they overlook is the increasing liquidity across the globe as capital sloshes around from one investment sector to another. Time will of course tell all.