Knot (ECB): Bank options in July are not limited to a 50 basis point increase

Klaas Knot, a member of the ECB, said in an interview with France’s Le Monde that the European Central Bank’s options for raising interest rates in September were not limited to 50 basis points.

“If conditions remain the same today, we will have to increase the rate above 0.25%. The next level is to go again with an increase of 0.50%, but our options are not necessarily limited to that,” he said. Governor of the Central Bank of the Netherlands.

The ECB announced last week that it would end quantitative easing on July 1, and then raise interest rates by 25 basis points on July 21.

It will then rise again on September 8, in a bigger move, unless the outlook for inflation improves in the meantime.

Knot also confirmed that the ECB is “very concerned” about inflation and that 75% of ECB-monitored prices are rising by more than 2%.

Source: Capital

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