The European Central Bank (ECB) head of policy formulation, Klaas Knot, said Thursday that the inflation outlook for the euro area has returned to normal, as reported Reuters.
Featured statements
“Headline Inflation Risks Tilt Up.”
“Risks of upward inflation are primarily related to more persistent supply-side bottlenecks and stronger domestic wage and price dynamics.”
“Welcoming the rise in market-based inflation expectations.”
“Current baseline projections consistent with the completion of the Pandemic Emergency Purchase Program (PEPP) in March 2022.”
“We are confident that the pre-pandemic inflation gap in our macroeconomic projections will close by the end of this year.”
“The ECB is weighing options to ease the transition out of the PEPP.”
Market reaction
The pair EUR/USD It did not show an immediate reaction to these comments and was last seen posting small daily gains at 1.1600.
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