In a German newspaper yesterday, ECB Notwotny had implied that the
ECB inflation projection was 1.8%. This was above the ECB last
projection of 1.5%, it is still below the 2.0% threshold the ECB likes
to maintain. The problem is the forecast is not to be released for
another month. CPI inflation is currently above that level at 2.4%.
This gives more credence to the more calming remarks from Jean Claude
Trichet after their interest rate meeting, but it let the proverbial
cat out of the bag.
However, Notwotny is now retracting the comment saying that the 1.8% prediction is not that of the ECB.
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