Nowotny Lets ‘Cat Out of Bag’ With Inflation Forecast

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European Central Bank council member Ewald Nowotny may have explained why President Jean-Claude Trichet has pushed back expectations for higher interest rates -- by revealing the bank’s latest inflation forecast for 2012.

“The ECB anticipates 1.8 percent inflation” next year, Nowotny said in an interview with Austria’s Der Standard newspaper published late yesterday.