ECB Governing Council member Klaas Knot said in an FT interview that in the five monetary policy meetings from now till July, the central bank would deliver “quite a decent pace of tightening”.
“The risk of us doing too little is still the bigger risk,” Knot said. “We are just at the beginning of the second half.”
By slow the pace from 75bps to 50bps, “we grant ourselves a little bit more time along the way as we tighten into 2023 to evaluate the effects of our tightening,” he added.
Knot also said recent economic data indicated that recession in the bloc would be “short and shallow” and the “worst… may already be behind us”.
