Central Banks

Knot Says ECB Needs at Least Two More Significant Rate Hikes

Dutch official says monetary policy is still accommodative
Markets expect a repeat of September’s 75 bps move this month

WATCH: Governing Council member Klaas Knot says the European Central Bank needs “at least two more significant hikes before we enter the range of plausible estimates for neutral.”Source: Bloomberg

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By Carolynn Look, Jana Randow, and Tom Keene

October 12, 2022 at 12:38 PM UTC

Updated on

October 12, 2022 at 3:03 PM UTC

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The European Central Bank should pursue forceful increases in borrowing costs at its October and December meetings, according to Governing Council member Klaas Knot.

The Dutch central bank chief said Wednesday that euro-area interest rates are “still way below neutral” -- referring to the level at which policy is neither stimulative nor restrictive.