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11/9/2021, 2:25 PM (Source: TeleTrader)
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Inflation to fall below 2% by 2023 - ECB's Knot

President of the Dutch central bank De Nederlandsche Bank (DNB) and the European Central Bank (ECB) Governing Council member Klaas Knot (pictured) estimated on Tuesday that the Eurozone inflation rate will drop below 2% "towards the end" of 2022.

"The longer... transitory [inflation] factors persist, however, the higher the probability that elevated inflation eventually feeds into higher wages. That is why our assessment of future wage developments will be very important in the period to come," Knot said at the UBS European Conference.

He went on to note that ECB's criteria for increasing interest rates likely won't be met next year. "[W]e will only start raising our key policy rates once we are confident that inflation has durably converged to our target, also in our projections," Knot explained.

Baha Breaking News (BBN) / MS