Knot says the starting point of the discussion is that the rate hike reflects a better outlook for growth and inflation.

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Klaas Knot, a member of the Governing Council of the European Central Bank (ECB) and governor of the Dutch central bank, said on Thursday that the starting point of the central bank’s discussion is that the rate hike reflects better growth and inflation prospects.

Key Comments:

“It can be optimistic about the economy in the second half of 2021“.

“The market is discounting the price cautious optimism about the outlook“.

“Banks probably have enough reserves to handle the increase in bad loans.”

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