Central Banks
ECB’s Knot Urges More Hikes to Tackle ‘Big’ Inflation Risk
- France’s Villeroy urges ‘orderly but determined’ action
- Officials, some economists are flagging 75 bps move in October
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The European Central Bank must raise interest rates further to prevent record euro-zone inflation from spilling over into wages, Governing Council member Klaas Knot said, reinforcing the hawkish message after this week’s historic hike.
Thursday’s 75 basis-point move was a “powerful and big signal but more steps should follow,” Knot told Dutch radio Friday, warning of a “big risk of second-round effects.”