Klaas Knot is President of De Nederlandsche Bank (DNB) – the central bank of the Netherlands - and thus a European Central Bank (ECB) Governing Council member.
Knot spoke with Japan's Nikkei ICYMI:
"I am increasingly confident in the disinflation process"
- Euro zone inflation is falling towards 2%
- Geopolitical stress poses only moderate risks
June rate cut remains realistic if price and wage data continue to come in line with projections
- "After June, I would say: no pre-commitment to any specific time path"
- “We will have to take a cautious approach after June”
- “Every quarter, we will have an additional data point on the labor market going into a fresh round of projections and that will be an important piece of information for us to recalibrate our policy settings,”
Knot did express some wariness:
- “The experience of the US in the last three months has reminded us that we should still be vigilant” (on inflation progress)
- “it may well be only in the course of 2025 that this condition can be established” (the condition being inflation falling towards 2%)
