ECB Governing Council member Klaas Knot said there is no need to raise interest rates before more sign of inflation pickup to target. He said “we will have to be patient and also, in my view, modest with respect to the precise moment at which we can expect inflation to converge toward our medium-term objective.” And, at this moment, a “wait-and-see attitude is probably the optimal attitude.”
Knot also tried to play down recession risk despite economic slow down. He said “the current situation might last a few quarters, but I’m still positive . . . that afterwards growth will return to levels slightly above potential again.”
