Euro: ECB ready for new tools, Knot indicates – Rabobank

The European Central Bank (ECB) would not hesitate to act if circumstances required it, Dutch ECB presidential candidate Klaas Knot told the Financial Times in comments highlighted by Rabobank’s Global Daily. For a future crisis of a different nature, he suggested the ECB might devise another, more tailored instrument. His remarks raise questions about the potential extent of policy support.

Knot signals scope for greater ECB flexibility

"It’s also notable that the Dutch candidate to replace ECB President Lagarde, Klaas Knot, gave an interview to the Financial Times in which he stated, “If circumstances require it, we will not hesitate to take action.”"

TMGM Analysis: Financial Market News, Economic Calendar & Market Insights

"He wasn’t referring to 50bps rate hikes due to geopolitically driven inflation but in the opposite direction, where if Europe were to see a future crisis “of a different nature,” he “would not rule out developing another, more tailored instrument.”"

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)