ECB’s Knot: Personally Expect First Interest Rate Cut in June

14 March 2024

By Isabel Teles – FRANKFURT (Econostream) – European Central Bank Governing Council member Klaas Knot on Thursday said that he expected the Governing Council to decide to cut interest rates for the first time in June.

Speaking to journalists in Amsterdam, Knot, who heads De Nederlandsche Bank, said, ‘I have personally pencilled in June for a first rate cut’, according to Reuters.

‘Where do we take it from there? We are data dependent, so I would focus on those meetings in which we have new projections, in September and December. But if incoming data tells us we can do more, the interim meetings should also be available’, he said.

If incoming wage data were compatible with meeting the 2% inflation target, the ECB would ‘gradually’ remove restrictions, he said.