ECB’s Knot: Direction of Inflation Most Uncertain in a Long Time
20 March 2025
By Marta Vilar – MADRID (Econostream) – European Central Bank Governing Council member Klaas Knot said on Thursday that the direction of inflation was now harder to predict than it had been for a long time.
In the presentation of the annual report for 2024 of De Nederlandsche Bank, which he heads, Knot said that ‘the uncertainty about the direction of inflation is larger than it has been in a long time.’
It was difficult to predict how interest rates would move, he said, as it was very hard to know how inflation would develop given the latest turn of events, he said.
About a potential trade war with the US, Knot said Europe had to judge the Trump administration ‘on its acts, it’s not easy to judge them only on their words.’
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