Klaas Knot is President of De Nederlandsche Bank (DNB) – the central bank of the Netherlands – and therefore a member of the Governing Council of the European Central Bank (ECB).
Knot spoke to Japan’s Nikkei ICYMI:
“I am more and more confident in the disinflation process”
- Inflation in the euro zone falls towards 2%
- Geopolitical tensions pose only moderate risks
June’s rate cut remains realistic if price and wage data continue to be in line with projections.
- “After June, I would say: no pre-commitment on a specific timetable”
“We will have to be careful after June”
- “Each quarter we will have an additional labor market data point for a new round of projections and this will be important information to allow us to recalibrate our policy settings,”
Knot expressed some distrust:
- “The experience of the United States over the last three months has reminded us that we must remain vigilant” (on the evolution of inflation)
- “it may well be that this condition can only be established during 2025” (the condition being that inflation falls towards 2%)
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