• ECB's Knot: Inflation expectations are at the upper limit of being well anchored, 50bps July hike on the table

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25 May 2022

ECB's Knot: Inflation expectations are at the upper limit of being well anchored, 50bps July hike on the table

Dutch Central Bank head and European Central Bank (ECB) Governing Council member Klass Knot said on Wednesday that Eurozone inflation expectations are at the upper limit of being well anchored and, so long as they do remain well anchored, he is all for gradualism, reported Reuters. A 50 bps rate hike in July is not off the table, he continued, while the option of holding rates steady is off the table. There is no need for concern about Eurozone bond yield spreads at current levels, Knot added. 

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