ECB's Knot opens door to possible 50bp interest rate hike
By Alexander Bueso
Date: Tuesday 17 May 2022
(Sharecast News) - One of the European Central Bank's most hawkish officials opened the door to a possible 50bp interest rate hike if needed.
In remarks to Dutch TV, the country's central bank Governor, Klaas Knot, said he backed a 25bp hike when the ECB´s governing council next met, in July.
But a larger increase should not be dismissed out of hand in case it were needed, he added.
Knot also said that he was not anticipating a global economic recession, although with citizens facing higher prices, normalising monetary policy was "the only option".
His comments triggered a spike in euro/dollar which as of 1412 GMT was ahead by 0.94% to 1.0532.
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