Knot Is First at ECB to Raise Prospect of Half-Point Rate Hike

  • Dutch central bank chief says such a move can’t be excluded
  • Klaas Knot is among the ECB’s most hawkish central bankers

Klaas Knot

Photographer: Zach Gibson/Bloomberg
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European Central Bank Governing Council member Klaas Knot became the first euro-zone official to suggest a possible half-point interest rate hike if inflation risks worsen, though he backs a smaller move for now.

The Netherlands governor, one of the ECB’s most hawkish policy makers, told Dutch television that he supports a quarter-point increase in July already mooted by several of his colleagues, but then added that a larger magnitude shouldn’t be excluded if necessary.