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Inflation in the euro zone will be higher next year than previously expected, and there is a chance that price increase could remain above the ECB’s objective in the medium term, according to European Central Bank board member Isabel Schnabel.
“The risks to inflation are skewed to the upside,” she said. “It’s plausible to assume that inflation is going to drop below our target of 2% in the medium term.
“However, there could be structural shifts pointing in the other direction,” Schnabel, the head of the ECB’s market operations, said.
“I don’t think we can truly tell, on the basis of today’s data, what is actually going to happen.” Despite a new round of COVID-19, Schnabel underlined that plans to stop pandemic emergency bond purchases are still in place.
Story by : Norvisi Mawunyegah