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ECB foresees inflation target by H2 2025 amid diminishing shocks

ECB foresees inflation target by H2 2025 amid diminishing shocks

In a recent meeting with the IMF and World Bank, Klaas Knot, a member of the European Central Bank (ECB) Council, highlighted a decrease in inflation shocks and a decline in consumer-price growth to 4.3%. These figures represent a significant drop from previous highs of over 10%.

Knot also discussed the ECB’s projections for reaching its 2% inflation target by the second half of 2025. He deemed this timeframe acceptable in light of the current economic climate. The ECB’s projection comes despite ten successive rate hikes that have been implemented to combat inflation.

Looking ahead to the ECB meeting scheduled for October 26, Knot indicated that no further modifications to interest rates are anticipated. This statement suggests that the central bank believes its current monetary policy is sufficient to manage inflation and stabilize economic conditions.

However, Knot was quick to underscore the ECB’s readiness to adjust interest rates as necessary. The central bank remains vigilant and prepared to respond swiftly to any new economic shocks or potential obstacles in the disinflation process.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Source: Investing.com

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