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ECB's Knot says "inflation is not dead" in Europe - NRC interview

Published 07/04/2021, 10:52 AM
Updated 07/04/2021, 10:55 AM
© Reuters. FILE PHOTO: ECB board member Klaas Knot appears at a Dutch parliamentary hearing in The Hague, Netherlands September 23, 2019 REUTERS/Eva Plevier/

AMSTERDAM (Reuters) - Rising inflation in Europe may not be temporary, Dutch central bank president Klaas Knot said in an interview published on Sunday in NRC Handelsblad.

"Inflation is not dead," said Knot, known as one of the more hawkish members of the European Central Bank's governing council.

"We should not over-estimate our ability to determine what is temporary inflation and what is not," he said.

The ECB forecasts inflation of 1.9% this year due to what it views as temporary factors amid a recovery after the coronavirus pandemic. For 2022, the bank forecasts inflation to fall back to 1.5%. Its long-term inflation target is near, but slightly below 2%.

If that is achieved in the medium term "then we'll see whether we are able to tighten the straps (of monetary policy) as strongly as we have been able to loosen them for the past 10 years," Knot told the paper.

Latest comments

Of course it is not dead. He knows it, ECB knows it, FED knows it... Just it is and was necessary to justify the printing of billions of euros and dollars which in big part go to the pockets of banks´ brotherhood. That´s why we heard and probably for some time still will hear that the inflation is temporary while clearly it is not.
wow how come
Not dead? He’s smart.I can see the same without any degree, just by going to the store for everyday shopping.
Inflation is not dead, Europe is.
Deflation coming with a vengence when people cant buy anything
Of course inflation is not dead. Inflation is the primary mechanism by which the banking cartel extracts its profits from the people. Inflation will only die when the central banking system dies.
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