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DNB Boss Warns Against Premature Optimism on Falling Gas Prices Related articles

De Nederlandsche Bank (DNB) chairman Klaas Knot warns against “too much optimism too soon” regarding falling gas prices. He thinks that inflation in the Netherlands this year will not be as high as last year. According to Knot, if the Netherlands does go into an economic recession, it will be a “very mild recession” and there is “nothing to worry about,” he said Sunday on WNL TV show Op Zondag.

De Nederlandsche Bank (DNB) chairman Klaas Knot warns against “too much optimism too soon” regarding falling gas prices. He thinks that inflation in the Netherlands this year will not be as high as last year. According to Knot, if the Netherlands does go into an economic recession, it will be a “very mild recession” and there is “nothing to worry about,” he said Sunday on WNL TV show Op Zondag. (EPA)

“Right now it looks like gas prices are making a slight comeback,” Knot noted. However, it is not yet possible to say whether this downward trend in the gas market will continue. «Gas stocks must be replenished this year for next winter. We can no longer do it this year with Russian gas, where we managed to do it last year. So let’s be careful here for a while.’

Not that difficult

According to him, that doesn’t change the fact that energy prices probably won’t rise as fast as they did last year this year. Overall, inflation will fall 5 to 6 percent this year, Knot estimates. This means that living in the Netherlands will become 5 to 6% more expensive this year. According to Knot, inflation is still too high.

The DNB chairman also notes that inflation has now widened. It is not only the energy bill that has soared, but also the prices of services such as a visit to the hairdresser or shopping at the butcher. According to Knot, the European Central Bank (ECB) will therefore have to raise interest rates in the eurozone several times to curb inflation.

Author: ap
Source: BNR

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