ECB’s Knot: Can’t Exclude or Confirm There Will Be a Cut in June

20 May 2025

By Marta Vilar – MADRID (Econostream) – European Central Bank Governing Council member Klaas Knot said on Tuesday that he could neither rule out nor confirm that the ECB will cut rates in June.

In remarks to reporters at De Nederlandsche Bank, which he heads, Knot said that he ‘can’t exclude we will decide to have another rate cut in June, but I also can’t confirm it.’

Policymakers had to get a clearer idea of the impact of trade tensions on inflation before they decided about a rate cut in June, he said.

‘Ultimately we have to focus on the medium to long term, where the impact on inflation is a lot more uncertain than in the short term’, he said.

The June macroeconomic projections would show a range of scenarios for inflation in terms of different outcomes from trade tensions, according to Knot.

‘I expect our projections to show lower inflation this year and next, but it is more interesting to see what happens after that period’, he said.

Related articles:

• ECB’s Knot: Medium-Term Inflation Impact of Tariffs Ambiguous
• ECB’s Knot: ‘This Is Actually a Time in Which We Need Projections’
• ECB’s Knot: ‘Neither Accommodative nor Restrictive’ Rate Level Is ‘Place to Be’