ECB's Knot: good chance inflation remains above 2% after 2022

ECB's Knot: good chance inflation remains above 2% after 2022
ECB's Knot: good chance inflation remains above 2% after 2022   -   Copyright  Thomson Reuters 2021
By Reuters

AMSTERDAM – Inflation in the euro zone could very well exceed the European Central Bank’s (ECB) current projections for the coming years, ECB governing council member Klaas Knot said in an interview published on Thursday.

The ECB this month projected inflation in the monetary union to fall to 1.8% after 2022, but Knot said that outlook could prove to be too rosy.

“I have a different view, I think the chance we remain stuck above 2% is just as big. Not far above 2%, but still,” Knot told Dutch daily Trouw.

Knot earlier this month said the ECB could decide to raise interest rates in 2023, if inflation continues to exceed expectations next year.