ECB’s Knot: There Are Rollover Risks Still in the Pipeline

3 July 2024

By Isabel Teles – SINTRA, Portugal (Econostream) – European Central Bank Governing Council member Klaas Knot on Wednesday said that the discussion of fiscal policy and sovereign debt was back on the radar and that rollover risk could still materialise.

Speaking on a panel during the ECB Forum on Central Banking, Knot, who heads De Nederlandsche Bank, said, ‘If the inflation outlook is such that rates will continue to have to be high for an extended period of time, of course at some point that rollover risk will manifest itself and I think there is still quite some rollover risk in the pipeline here.’

The biggest challenge that financial stability faced regarding geoeconomic fragmentation was of a global nature, he said.

‘Most of the financial vulnerabilities are truly global in nature and can only be remedied with a global approach, with a global cooperative approach where everybody is willing to play his or her role’, he said.