The ECB should raise interest rates by 25 basis points in July but should not rule out a further increase, said Klaas Knot, head of the Dutch central bank and a member of the ECB.
“The first rate hike is now set for the monetary policy meeting on July 21, and that seems realistic to me,” Knot said.
He added, however, that the ECB should keep the door open for more movement if new data from the coming months show that inflation is widening or accumulating.
“If that happens, a larger increase should not be ruled out. In that case, a reasonable next step would be to spend half a percentage point,” he added.
The next meeting of the ECB is on June 9, but it has virtually ruled out the possibility of raising interest rates, as it continues to increase public debt.
Her assessment emphasizes that interest rates can only rise when the bond market, which is now expected in the middle of the year, is over.
Source: Capital
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
