(Finance) – “We will again a significant advance in interest rates in December“He said it Klaas Knotpresident of the Bank of the Netherlands and a member of the ECB’s Governing Council, in an interview with Dutch TV program Buitenhof, adding that the next increase in the cost of borrowing is likely to be between 50 and 75 basis points.
A 75 basis point increase is possible, but it is too early to tell“.” There are still six weeks to go and there is still a lot of economic data coming out, “he pointed out.
“We’re not even halfway through,” Knot said of the ECB’s fight against rising inflation in the euro zone. “We are still driving interest rates back to their neutral levelfor which we will also need the December meeting, “added the central banker, one of the most hawkish on the board.
“From the 2023 we will play the second half, with smaller interest rate increases and by tightening our budget – he explained – Then we will be in the area where we will effectively cool the economy, which is necessary to bring inflation from 10% to 2% in the next 18-24 months “.