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Bloomberg

ECB's Knot Says Inflation May Cause Considerable Challenges

European Central Bank Governing Council member Klaas Knot warned that 'historically large shocks' in the global economy and their fallout on prices will be hard to navigate and require flexibility from policymakers. The framework for global trade is highly uncertain, but it's also unclear how the economy responds to the current shifts, the Dutch central-bank chief said Wednesday in a speech. While downside risks to growth and inflation dominate in the near term, the outlook further down the line — which matters for ECB policy — is 'more ambiguous,' he said.