Klaas Knot is President of De Nederlandsche Bank (DNB) and thus a member of the Governing Council of the European Central Bank.
He spoke in an interview with Dutch newspaper NRC, warning "Inflation is not dead":
- "We should not overestimate our capacity to determine in advance what is temporary inflation and what is not"
And added that there are potentially other conceivable scenarios than the ECB's base case of persistently low inflation.
He flagged March 2022 as a likely date to begin winding back extra stimulus.
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In general "We should not overestimate our capacity to determine in advance ... " is reasonably good advice not just for estimating future inflation rates. Predictions are difficult, especially about the future (famous saying!) and we should be humble and adaptable when making them.
