
The European Central Bank (ECB) would not hesitate to act if circumstances required, Klaas Knot told the Financial Times. Rabobank’s Global Daily highlights the remarks from the Dutch candidate for the ECB presidency. Knot suggested that a future crisis of a different nature could prompt the ECB to develop another, more tailored instrument. His comments raise questions over the potential reach of policy support.
"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.”"

"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.)