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ECB's Governing Council member Knot: Risks for headline inflation are again tilted to the upside - Reuters

Ekonomické zprávy

14.10.2021

ECB's Governing Council member Knot: Risks for headline inflation are again tilted to the upside - Reuters

Upside risks, in short to medium term, are mainly linked to more persistent supply-side bottlenecks and stronger domestic wage-price dynamics
ECB’s current baseline scenario is consistent with ending PEPP in March 2022
While we are currently thinking about options to ease the transition out of PEPP, incoming data should clarify how the risks surrounding our current inflation baseline will play out
Inflation outlook is now "back on track" and market-based inflation expectations are putting price growth broadly in line with ECB's 2%-target
I very much welcome these developments; coming from prolonged period of setbacks and deflation risks, this is good news

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