ECB Governing Council member, Klaas Knot says that the ECB should be flexible in its strategy involving interest rates because of the rising uncertainty in the economy.
“In this environment with significant uncertainty about the supply side of the economy, it is important to keep all options open,” said Knot who is also the head of the Dutch central bank.
Knot spoke at a Group of 30 conferences about keeping “all options open” in policy-making for figuring out inflation and economic growth. According to him the flexibility in options would be benefit ECB in protecting itself for the inevitable risks that could be directed in both directions either for growth or inflation.
