ECB’s Knot: Will Be Able to Remove Restrictions if Inflation Continues to Ease

14 May 2024

By Isabel Teles – FRANKFURT (Econostream) – European Central Bank Governing Council member Klaas Knot on Tuesday said that it would be possible for the ECB to start cutting interest rates if inflation continued to decelerate.

Speaking at a conference organised by the Foreign Bankers’ Association in the Netherlands, Knot, who heads De Nederlandsche Bank, said ‘If we manage to continue on this track, incoming data continues to validate this development, then it will be appropriate for us to gradually take our foot off the brake and remove some of the restrictive monetary policy.’

The ECB’s monetary policy decisions would not be strongly affected by the Fed’s, he said.

‘I don't think it will change the direction of travel in the euro area that much,’ Knot said.