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  • ECB's Governing Council member Knot: ECB shouldn't make long-last and unconditional commitments once PEPP ends, must keep optionality
Ekonomické zprávy
09.11.2021

ECB's Governing Council member Knot: ECB shouldn't make long-last and unconditional commitments once PEPP ends, must keep optionality

- Says APP is appropriate tool for marginal policy adjustment beyond PEPP, should keep optionality to adjust APP both up and down

- Expects inflation to fall below 2% towards the end of 2022 but must prepare for upside scenarios

- Inflationary pressures from higher energy prices and supply bottlenecks are lasting longer than initially thought

- Conditions for a rate hike very unlikely to be met in 2022

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