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12/3/2021, 10:40 AM (Source: TeleTrader)
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High inflation may lead to rate hike in 2023 - ECB's Knot

President of the Dutch central bank De Nederlandsche Bank (DNB) and ECB Governing Council member Klaas Knot (pictured) said on Friday that if the high inflation rate persists next year and surpasses the European Central Bank's base scenario, an increase in interest rates in 2023 cannot be ruled out.

However, the ECB still assumes that "higher inflation is largely a temporary phenomenon," he told Het Financieele Dagblad in an interview.

Speaking about the bank's pandemic emergency purchase program (PEPP), Knot stressed that "without those bond purchases, inflation might have been pushed down even harder."

Baha Breaking the News (BBN) / MS