ICYMI – ECB’s Knot increasingly confident on falling inflation, June rate cut realistic

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%)

This article was written by Eamonn Sheridan at www.forexlive.com.