ECB faces complex meeting in June, Dutch central bank governor Knot says in FD report
Published by Global Banking and Finance Review
Posted on April 28, 2025
Global Banking and Finance Review is an online platform offering news, analysis, and opinion on the latest trends, developments, and innovations in the banking and finance industry worldwide. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.
Published by Global Banking and Finance Review
Posted on April 28, 2025
AMSTERDAM (Reuters) -The European Central Bank's next policy meeting will be complex, as policymakers need to balance the uncertainty around inflation risks from U.S. tariffs, Dutch central bank governor Klaas Knot said in an interview with Dutch financial daily FD.
"In the short term, it's 100% clear that the demand shock will dominate, so inflation will go down," Knot said, speaking about the effects of tariffs imposed by U.S. President Donald Trump.
"But the ECB looks at inflation risks in the middle to long term. In the longer term inflation risks are definitely two-sided. I think the June meeting will be really complex."
ECB policymakers are becoming increasingly confident about cutting interest rates in June as inflation continues its march lower, but there is little to no appetite for a big move, six sources told Reuters last week.
Many governors were now seeing growing chances of an eighth quarter-point cut at the June 4 meeting, when the ECB will update its own economic forecasts, they said. The ECB trimmed its benchmark rate to 2.25% earlier this month.
(Reporting by Bart Meijer; Editing by Varun H K)