European Central Bank board member Knot: Next steps cannot be predicted, uncertainty is the core issue

On June 18, Jin10 Data reported that ECB committee member Knot stated that any future interest rate changes will depend on data, ‘However, the economy and our financial system are facing risks, and uncertainty is a core issue.’ Knot said that first, inflation may start to rise again, for example, due to sustained strong wage growth. ‘Therefore, it is important to make further decisions based on the data received, rather than preemptively predicting future developments.’ At the same time, various factors such as geopolitical tensions are creating greater uncertainty, which may lead to financial market adjustments and higher risks for financial institutions. He also stated that high stock prices make the financial markets vulnerable to adjustments and emotional downturns. ‘For example, last week’s political uncertainty in France led to an adjustment in French government bonds, which also affected French bank stocks.’