In an interview with the Financial Times, Knot stated that the ECB would achieve a "quite decent pace of tightening" through half percentage point increases at its five policy meetings leading up to July 2023. He added that the risk of not raising rates enough is currently greater than the risk of raising them too much.
ECB's Knot Emphasizes the Importance of Tightening Monetary Policy
Klaas Knot, head of the Dutch Central Bank and member of the ECB's governing council, has emphasized the importance of tightening monetary policy in order to prevent inflation from rising too quickly. In an interview with the Financial Times, Knot stated that the ECB plans to raise interest rates at a "quite decent pace" in the months ahead.
He explained that with five policy meetings scheduled between now and July 2023, the bank will gradually increase borrowing costs until they eventually peak in the summer.
