The member of the Governing Council of the European Central Bank and president of the Dutch central bank, Klass Knot, said on Thursday that a rate hike in the fourth quarter of this year remains a realistic expectation, but it is by no means a certaintyas reported by Reuters.
Knot has added that two rate hikes this year cannot be excludedbut that would require a further upward revision of inflation expectations.
Asset purchases should be reduced to 10 billion euros in July and end at the end of Julyhe continued, noting that September should be available for a rate hike, “not that i expect rates to have to go up in september“.
A delay in a rate hike until January would require strong negative demand effects due to the war in Ukrainehas detailed Knot.
Source: Fx Street
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