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

FILE PHOTO: ECB board member Klaas Knot appears at a Dutch parliamentary hearing in The Hague
FILE PHOTO: ECB board member Klaas Knot appears at a Dutch parliamentary hearing in The Hague, Netherlands September 23, 2019 REUTERS/Eva Plevier/File Photo

December 30, 2021

AMSTERDAM (Reuters) – 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.

(Reporting by Bart Meijer; Editing by Sam Holmes)