ECB's Knot Says Inflation Picture for June Still Unclear

ECB's Knot says inflation picture for June still unclear

ECB policymakers will need to get a clearer picture of the effects of US and EU trade policies on inflation before they can decide whether interest rates need to be cut in June, ECB governing council member Klaas Knot said.

The European Central Bank may need to cut its key interest rate below its neutral range of 1.5 percent to 2 percent to prevent inflation from falling below its 2 percent target given the fragile economy. Mario Centeno, a member of the European Central Bank's Governing Council and head of the Portuguese central bank, said on Wednesday. Reuters reports. "We cannot risk having a monetary policy that reduces inflation below the 2 percent target," he…

The European Central Bank has already cut interest rates seven times since June.

"The first 25 years of the euro: What has been, what will happen?" How is the euro going to continue? Will high public debt, geopolitical crises and the erratic economic and trade policies of the current US government contribute to high inflation in Europe, or can the European Central Bank (ECB) prevent it? Can the euro compete with the dollar as an international reserve currency? What does it depend on whether it comes to the state concurrence …

Members of the European Central Bank will need to have a clearer view of the effects on the inflation of trade policies in the United States and the European Union before deciding whether interest rates will need to be cut in June, said Klaas Knot, a member of the Governing Council of the ECB. "I cannot exclude the possibility of having another court ruling in June, but I cannot confirm," Knot told the reports in the Dutch central bank.

ECB’s Knot: June rate cut possible, but not confirmed - Action Forex

Dutch ECB Governing Council member Klaas Knot said today that a rate cut at the June meeting remains on the table but is far from a done deal. “I can’t exclude we will decide to have another rate cut in June, but I also can’t confirm it,” he told reporters, emphasizing that ECB must remain […] The post ECB’s Knot: June rate cut possible, but not confirmed appeared first on Action Forex.