ECB’s Knot: I’m pretty confident inflation will hit 2% in 2025

• I’m pretty confident inflation will hit 2% in 2025.
• We can take our foot off the brake if the base case holds.
• It’s logical to assume a recovery in consumption.
• Consumer recovery will take a bit longer.
• Structural undershoot of the 2% goal is not a risk now.
• Large economic deterioration is needed for bigger cuts.
• The biggest slowdown in wages is still ahead of us.
• Trade fragmentation will be bad for both the US and Europe.

This article was written by Giuseppe Dellamotta at www.forexlive.com.