Central Banks
ECB’s Knot Sees Strong Case for Quarterly Policy Assessments
- Persistent uncertainty warrants data-dependent approach
- Officials must avoid committing to specific rate path, he says
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There’s a “strong case” for the European Central Bank to decide on interest rates once a quarter when new economic projections are available, according to Governing Council member Klaas Knot.
Officials have “little experience” with easing monetary policy gradually and are faced with still-high uncertainty and structural shifts in the global economy that warrant a “data-dependent approach,” Knot said in a speech in Milan on Thursday.