1 minute ago by Reuters1 minute ago by Reuters1 minute ago by Reuters1 ReadFILE PHOTO: ECB board member Klaas Knot attends a Dutch parliamentary session on September 23, 2019 in The Hague, Netherlands. AMSTERDAM/REUTERS/Eva Plevier (Source: Reuters) In an interview published on Sunday in NRC Handelsblad, Dutch central bank president Klaas Knot stated that rising inflation in Europe may not be temporary. “Inflation is not dead,” said Knot, a member of the European Central Bank’s governing council who is recognized for being one of the more hawkish members. “We shouldn’t overestimate our ability to distinguish between temporary and permanent inflation,” he warned. The European Central Bank expects inflation to be 1.9 percent this year, owing to what it sees as temporary factors as the economy recovers from the coronavirus outbreak. Inflation is expected to fall to 1.5 percent in 2022, according to the bank. Its long-term inflation aim is close to, but just below, 2%. If that is accomplished in the longer term, “we’ll see if we can tighten the straps (of monetary policy) as severely as we have been able to relax them for the past ten years,” Knot told the daily. Toby Sterling contributed reporting, and Raissa Kasolowsky edited the piece./n
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