Will Interest Rates in the Eurozone Decrease?

A member of the European Central Bank's Governing Council, Klaus Knott, indicated today that the bank will need to see evidence of a slowdown in wage growth in the Eurozone before lowering interest rates. The Dutch central bank governor Knott mentioned in an interview broadcast by Dutch television, "We now have a reasonable chance that inflation will return to two percent by 2025. The only missing piece is the conviction that wage growth will adjust to this lower inflation." He added, "Once the remaining piece of the puzzle is in place, we will be able to lower interest rates a bit."