ECB's Klaas Knot Advocates Flexibility in Interest Rates Amid Economic Weakness

Reported about 1 month ago

Klaas Knot, a member of the European Central Bank's Governing Council, emphasized the need for flexibility in interest rates due to uncertainties in the economy. Speaking in Washington, he noted that recent data suggests balanced risks for inflation, but also raised concerns about disappointing growth in the euro area. Policymakers are divided on the pace of potential interest rate cuts as inflation drops unexpectedly fast and economic indicators signal stagnation. Knot expects a soft landing rather than a recession in the euro zone.

Source: YAHOO

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