ECB Rehn expects eurozone inflation to be around 2% over the next two years: Handelsblatt


Inflation in the Berlin-Eurozone has subsided throughout the year, and inflation will revolve around the European Central Bank’s price stability target of 2% over the next two years, Finland’s central bank governor Olli Rehn said on Sunday. It was told. ..

In a pre-released interview with the German business newspaper Handelsblatt, Ren said the future pace of the ECB’s loose monetary policy normalization depends on economic data.

“Personally, I expect the economic data to remain relatively good despite being affected by the Omicron variant,” Len said, at least unless there is a new economic shock. He added that he saw the 2023 rate hike as a logical step.

Ren, who is also a member of the ECB’s board of directors, pointed out that Germany’s denuclearization at the end of the year will increase its reliance on natural gas imports from Russia and increase the volatility of energy markets.

“Germany’s energy policy decisions affect price volatility and thus uncertainty about inflation,” Ren said.

“For me, the switch from coal to natural gas is not an environmentally friendly transition, and this transition phase will take a long time in Germany,” he added.

In the discussion of the European Union’s fiscal rules, the head of the Finnish Central Bank supported reforms to make the so-called Stability and Growth Pact more consistent, realistic and at the same time flexible.

“A debt limit of about 60% of GDP is clearly unrealistic, as stipulated in previous regulations,” Rehn said, saying that Italy’s debt-to-GDP ratio after the pandemic would be about 160%. It is predicted.

“If you can’t reach your goal, they won’t achieve anything,” Ren said.

Reuters

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