The European Central Bank must have certainty on wages in order to be able to lower interest rates, according to Governing Council member Klaas Knot. There’s a “credible outlook” to bring inflation back to the ECB’s 2% goal in 2025, he said on in an interview on Dutch state broadcaster NPO1 on Sunday. “The only piece of the puzzle we are missing is the absolute conviction that wage growth will adapt to slower inflation,” Knot, who’s among the more hawkish rate setters, told the Buitenhof TV program. “When that piece of the puzzle falls into place, we will be able to lower the interest rate a bit.” His comments are in ... (full story)