MNI BRIEF: EZ Inflation Could Be Above 2% in 2023 - Weidmann

The euro area price outlook is "exceptionally uncertain" and inflation rates may not fall below the ECB's 2% target over the medium term, Bundesbank president Jens Weidmann said in a speech Friday, with higher inflation expectations and higher wage growth possible drivers of price increases.

"Thus, the fallout from the pandemic could have a marked impact on the inflation setting," Weidmann said, adding that EU fiscal rules needed to be given "teeth" in order to make public finances more sound. A return to monetary policy normality also appears increasingly elusive, he added, as central banks remain committed to quantitative easing.