Economist Knot (former ECB) says core inflation and second-round effects will likely pick up
ORIGINAL · NewsquawkEconomist Knot (former ECB) says core inflation and second-round effects will likely pick upRead originalHide original
ECB may have to approach 2% goal more often from above. ECB would respond, when appropriate, with a ‘hawkish-leaning’ policy. Europe's lack of integrated capital markets is harming the region. Financial markets struggle to price geopolitical risks. Netherlands' new pension system is better equipped to absorb volatility. Private credit is hampered by opaque ratings and valuations.
Knot flagged likely inflation pressures and a conditional hawkish-leaning ECB response, alongside concerns about European markets, pensions and private-credit transparency.
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ECB may have to approach 2% goal more often from above. ECB would respond, when appropriate, with a ‘hawkish-leaning’ policy. Europe's lack of integrated capital markets is harming the region. Financial markets struggle to price geopolitical risks. Netherlands' new pension system is better equipped to absorb volatility. Private credit is hampered by opaque ratings and valuations.
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