Central Banks
ECB Inflation Goal in Reach to Allow Taking Foot Off Rate Brake, Knot Says
Shoppers in Alexanderplatz in Berlin.
Photographer: Yen Duong/BloombergThis article is for subscribers only.
Consumer-price growth returning to the European Central Bank’s target will allow policymakers to stop restricting economic growth via its interest rates, according to Governing Council member Klaas Knot.
“Our monetary policy is still inhibiting economic activity right now,” he said in an interview on Dutch state broadcaster NPO1 on Sunday. “But when we are back at 2% inflation, that is no longer necessary, so gradually we are taking our foot off the brake, and trying to aim for the moment when we have recovered 2%.”