The European Central expects inflation to slow and not to raise interest rates in 2022

Inflation is expected to slow in 2022, as supply chain bottlenecks and energy prices ease, although it is likely to remain at more than 2% in the eurozone for the rest of the year, according to European Central Bank Governing Council member Gabriel Makhlouf.

Makhlouf said he does not expect the ECB to raise interest rates in 2022, although policy makers “should be watching closely”.

Makhlouf explained in an interview with “KCLR” channel, today, Saturday, that the “big challenge” will be to monitor any effects of the second round of inflation, such as higher wages without corresponding increases in productivity.

He added, “If we see risks of this kind of second round effects of inflation occurring, we will definitely take action at the European Central Bank to manage that.”