ECB Official Highlights Inflation Risks from Trade War

Klaas Knot, a prominent member of the European Central Bank (ECB) Governing Council and President of De Nederlandsche Bank (DNB), issued a stark warning about the long-term effects of the global trade war. Speaking at a conference in Amsterdam, Knot described the situation as a "negative supply shock" that could have inflationary consequences.

Call for Vigilance and Strengthening the EU Market

Knot emphasized the need for vigilance against inflation, drawing parallels to the supply/demand challenges of 2022. He urged the European Union to bolster its internal market to mitigate these risks.

ECB's Upcoming Meeting: No New Projections Expected

Additionally, Knot revealed that the ECB would not be presenting new inflation and growth projections at its forthcoming meeting, signaling a cautious approach in uncertain times.