AMSTERDAM, Oct 30 (Reuters) – The European Central Bank could raise interest rates another 75 basis points at its next meeting in December, Bank of the Netherlands chairman and member Klaas Knot said on Sunday. of the institution’s Board of Governors.
The ECB raised its deposit facility rate by three quarters of a percentage point on Thursday, taking it to 1.50%, its highest level since 2009, and amplifying the normalization of its monetary policy, which should continue in the coming months to combat inflation, which has reached almost 10% in the euro zone.
“We will again take a significant step on the interest rate in December,” Klaas Knot said in an interview with Dutch broadcaster Buitenhof, adding that the hike would likely be between 50 and 75 basis points.
“We’re not at halftime yet,” he added in response to a question about fighting inflation. “We are still in the process of getting interest rates back to neutral, which is what we will still need the December meeting for.”
“From 2023, we will play the second half, raising interest rates more modestly and reducing our balance sheet,” he continued. “Then we will be in the zone where we effectively cool the economy, which is necessary to bring inflation down from 10% to 2% in the next 18 or 24 months.” (Bart Meijer report, French version Jean-Stéphane Brosse)