Economics

Inflation means more rate hikes coming in July and August, ECB member says

Klaas Knot, the Dutch central bank chief, tells Irish Times it is ‘too early to talk about a pause’ amid still-high inflation

Klaas Knot: a hawkish member of the ECB’s governing council, he said he was ‘not uncomfortable’ with the current money-market wagers on a further 75 basis points of tightening. Picture: Bloomberg

The European Central Bank may need to raise interest rates in June and July following next month’s hike, according to governing council member Klaas Knot.

“It’s too early to talk about a pause,” the Dutch central bank chief told the Irish Times in an interview published on Thursday. “For a pause, I would really need to see a convincing reversal in underlying-inflation dynamics.”

The ECB is widely expected to raise rates again on May 4, ...