ECB’s Knot: ‘This Is Actually a Time in Which We Need Projections’

24 April 2025

By Marta Vilar – MADRID (Econostream) – European Central Bank Governing Council member Klaas Knot said on Thursday that the current environment suggested that a new round of projections was necessary in order to take further monetary policy decisions.

In an interview with CNBC, Knot, who heads De Nederlandsche Bank, said that ‘in the medium term the inflation outlook is not all that clear.’

There could be some negative impact, but some factors like retaliation and supply chain disruptions could be inflationary in the medium term, according to Knot.

‘So, this is actually a time in which you need projections, projections where you can see the time profile of the impact on both growth and inflation’, he said. ‘And I am looking forward to our June meeting to see the projections.’

When asked about his position with regards to June 5, Knot described himself as being ‘fully open-minded’ as it was ‘too early’ to say which option, pausing or cutting, would be best.

‘It will fully depend on these projections, on how the medium term of inflation will be affected by these opposing factors: on the one hand weaker demand, retaliation and fiscal policy coming on’, he said.