ECB’s Knot says euro zone inflation is not yet where ECB wants it

File photo of fifty-euro notes at the Belgian Central Bank in Brussels
FILE PHOTO: Fifty-euro notes are seen at the Belgian Central Bank in Brussels in this December 8, 2011 file photo. REUTERS/Yves Herman

May 19, 2019

MILAN (Reuters) – The euro zone inflation is not where the European Central Bank wants it, ECB policymaker Klaas Knot said in an interview published by Italian daily Corriere della Sera on Sunday.

The current situation “is not full convergence to below but close to 2%, I think. We have a figure in mind that is clearly closer to 2% than the number we have seen over the last five, six years or so,” said Knot, the Dutch central bank governor.

“The only thing that we can do is to keep the pressure up, make sure the economy continues to perform at high levels of capacity utilization and the economy continues to print GDP numbers in excess of potential growth. At some point this chain of events will also lead to higher prices.”

(Reporting by Francesca Landini; Editing by Peter Graff)

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