ECB seeks at least two more rate hikes of half a point

As it was recently stated by Klaas Knot, Governing Council member of the European Central Bank, the ECB should continue raising the interest rate. In his opinion, the necessary hikes of half a point must be delivered at the two upcoming meetings, and now it’s too early for a slowdown in the pace of monetary tightening.

Knot considers the Bank’s policy approach to become more nuanced when risks to the inflation outlook become more balanced. He expects it to happen during in the first half of the year.

Knot, Dutch central bank chief, is famous for his hawkish attitudes, and last week, he also spoke in favor of further tightening of monetary policy. He pointed out that while headline inflation became slower, underlying inflation continues increasing.

In his separate interview with WNL on Sunday, Klaas Knot once again voiced his position. According to him, the rate will be raised at least twice, in May and June. At the same time, Knot didn’t specify what size of increases he expects to see.