Central Banks

ECB’s Knot Says ‘Protracted Period’ Needed to Tame Inflation

  • Price risks ‘entirely’ to upside, Dutch official says in Paris
  • Any talk of over-tightening at this point is ‘a bit of a joke’

Klaas Knot

Photographer: Ting Shen/Bloomberg
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European Central Bank Governing Council member Klaas Knot signaled that the cycle of interest-rate increases targeting record inflation isn’t close to ending.

The Dutch central bank chief said that while the ECB’s projections see price growth easing to near the 2% target in 2024 from more than five times that at present, risks to the outlook “are entirely tilted to the upside.”