BERLIN—The drivers of inflation in the eurozone will subside over the course of the year and inflation will hover around the European Central Bank’s price stability target of 2 percent in the next two years, Finnish central bank chief Olli Rehn was quoted as saying on Sunday. In a pre-released interview with German business daily Handelsblatt, Rehn said the future pace of normalization of the ECB’s loose monetary policy depended on the economic data. “Personally, I expect the economic data to remain relatively good despite being affected by the Omicron variant,” Rehn said, adding he therefore viewed rate hikes in 2023 as a logical step, at least as long as there are no new economic shocks. Rehn, who is also an ECB Governing Council member, pointed out that Germany’s nuclear phase-out at the end of the year would increase dependence on natural gas imports from Russia and bring more volatility …
ECB’s Rehn Expects Eurozone Inflation of Around 2 Percent in Next Two Years: Handelsblatt
January 24, 2022
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