© Reuters. FILE PHOTO: European Central Bank (ECB) board member Klaas Knot appears at a Dutch parliamentary hearing in The Hague, Netherlands September 23, 2019 REUTERS/Eva Plevier
AMSTERDAM (Reuters) – Markets seem to be underestimating the risk that inflation will be higher than models currently predict, European Central Bank (ECB) governing council member Klaas Knot said on Monday.
Knot said there is a significant chance inflation in 2024 will be higher than the 2.3% the ECB has guided for, but that markets did not seem to have priced in this risk yet.
