The ECB shouldn’t hesitate to raise interest rates after July if inflation remains high, Knot says

The European Central Bank (ECB) will need at least two more 25 basis point rate hikes in June and July and should be ready to raise borrowing costs further if inflation remains too high, the board member said on Wednesday of the ECB Klaas Knot.

“I expect two rate hikes in June and July,” Knot said at a hearing in the Dutch parliament.

“After that, the picture is unclear. In an optimistic scenario, we will have done enough by then. But there are many upside risks that could force us to hike rates further. I wouldn’t hesitate to do so if necessary.”

Source: Terra