ECB’s Knot: Rate hikes are working, more needed

Anil Panchal FXStreet

“The European Central Bank's (ECB) interest rate hikes are starting to have an effect, but more will be needed to contain inflation,” said Dutch Central Bank President Klaas Knot per Reuters.

The news portrays ECB’s Knot as a policy hawks as it cites the policymaker’s vote for the ECB decision on Thursday to slow the speed of rate hikes to 25 basis points, or 0.25%.

“But, speaking on Dutch television, he said he still could support the lifting of rates to 5% from the current 3.25%, or even higher - if inflation proves more persistent than he expects,” adds Reuters.

ECB’s Knot also said that their policy works with a certain delay, so the biggest effects of what we have done so far are still in the pipeline

Also read: EUR/USD grinds higher past 1.1000 with eyes on US inflation, banking report

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Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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