6/7, 11:23 AM (Source: TeleTrader)
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ECB's Knot: Further rate hikes will be necessary

Member of the European Central Bank (ECB) Executive Board and De Nederlandsche Bank NV (DNB) President Klaas Knot (pictured) remarked on Wednesday that there is still a need for more raises in interest rates.

At a hearing at the Dutch parliament, Knot pointed out that such moves might be necessary as inflation could remain "too high" for quite some time. Therefore, he is "not convinced" the present level of tightening is sufficient, he said.

Commenting on the situation in the financial markets, Knot noted those are "extraordinarily optimistic and are expecting inflation to drop as fast as it rose. For next year even rate decreases are already priced in." "Exactly in such a situation, a longer than expected period of monetary tightening to keep inflation in check will increase the risk of renewed stress on financial markets," he added.

Baha Breaking News (BBN) / JR