ECB’s Knot ‘Can’t Rule Out’ Another Interest-Rate Cut in June

European Central Bank Governing Council member Klaas Knot said another reduction in borrowing costs is possible next month, though stressed that it’s “too early” to make decisions without seeing fresh quarterly forecasts.

The Dutch official said policymakers face a “complicated constellation” of challenges. US trade policy represents both a negative demand shock and a negative supply shock, with the latter potentially stoking inflation in the medium term, he warned.