ECB: I am leaning towards a 75 basis point hike in September – Klaas Knot

The official of European Central Bank (ECB), Klaas Knot, he declared on Tuesday that he was leaning towards a 75 basis point rate hike in September, but added that he was open to debate. He said that going back to neutrality would not be enough to tame inflation. He said a buildup of labor could be seen in the early phase of the economic slowdown.

“We must attack with force the growth problem of a persistently high inflationsaid Knot. He explained that a deceleration The economy alone is unlikely to bring inflation back to the ECB’s target in the medium term. He also said he sees upside risks to inflation.

The euro it was unaffected by the comments and remains one of the best performing currencies among the G10. EUR/USD is trading above the parity level and EUR/GBP above 0.8550.

Source: Fx Street

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