ECONOMY-ECB/KNOT – REUTERS Agency
AMSTERDAM, April 7 (Reuters) – Klaas Knot, a member of the European Central Bank’s (ECB) Governing Council, said it was unclear whether a 50 basis point interest rate hike was necessary in May, or whether there was a possibility. of an increase of 25 basis points.
“The question is whether we still need a further 50 basis point hike, like we did last time we raised rates, or whether we can slow it down to 25 basis points,” Knot, who is also the head of the Dutch central bank, told the newspaper. NRC.
“We will have to decide during the ECB meeting in May … by then much more economic data will have been released,” he added.
The ECB’s standard guidance is that decisions are made on a meeting-by-meeting basis, but if inflation evolves according to the base-case scenario seen in the March economic projections, then another interest rate hike in May will be appropriate. (Reporting by Bart Meijer and Benoit Van Overstraeten; Editing in Spanish by Manuel Farías)
Source: Ambito
