Latest news with #KlaasKnot
Bloomberg
28-05-2025
- Business
- Bloomberg
ECB's Knot Says Inflation May Cause Considerable Challenges
European Central Bank Governing Council member Klaas Knot warned that 'historically large shocks' in the global economy and their fallout on prices will be hard to navigate and require flexibility from policymakers. The framework for global trade is highly uncertain, but it's also unclear how the economy responds to the current shifts, the Dutch central-bank chief said Wednesday in a speech. While downside risks to growth and inflation dominate in the near term, the outlook further down the line — which matters for ECB policy — is 'more ambiguous,' he said.
Yahoo
20-05-2025
- Business
- Yahoo
Loss of dollar's role as world's dominant currency still far off, ECB's Knot says
AMSTERDAM (Reuters) - Some of the world's major currencies will try to compete with the dollar on the global stage and could even attract some investor flows but the dollar will stay the world's key currency for some time to come, Dutch central bank chief Klaas Knot said. Some investors have reduced their exposure to the dollar in recent months, worried that trade tensions and erratic policy by the U.S. administration will ultimately erode the greenback's global reserve currency status. But others argue that there is no alternative for now since the dollar market is far bigger than any other competitor, and the euro zone, the largest potential challenger, is simply too fragmented. "There will be competition between currencies," Knot, the head of the global Financial Stability Board, told a conference on Tuesday. "But I think there is simply no alternative yet for the role that the dollar plays." Knot, the longest serving member of the European Central Bank's Governing Council, argued that investors could reduce their dollar exposure but that in itself would not dethrone the currency. "The starting point is that most international investors today are overweight in U.S. dollar because of the returns they've seen over the last 10 years," Knot said. "Maybe you will see a move for the more neutral weighing." The euro zone could make its own currency a more attractive financial instrument but that would require a great deal of internal structural work to revive long-stalled integration efforts, he said. "The daily turnover in 10-year US Treasuries is around 900 billion euro while the daily turnover in 10-year Bund is 30 billion," Knot said. "That tells you something about the liquidity of the market and the capability to hedge your risk." Sign in to access your portfolio
RTÉ News
20-05-2025
- Business
- RTÉ News
ECB's Knot says inflation picture for June meeting still unclear
ECB policymakers will need to get a clearer picture of the effects of US and EU trade policies on inflation before they can decide whether interest rates need to be cut in June, ECB governing council member Klaas Knot said. "I can't exclude we will decide to have another rate cut in June, but I also can't confirm it," Knot told reporters at the Dutch central bank. "Ultimately we have to focus on the medium to long term, where the impact (from trade policies) on inflation is a lot more uncertain than in the short term," he said. Knot said new inflation projections at the June policy meeting would take into account various scenarios for inflation in the euro zone, in light of trade tariffs announced and later suspended by the US administration and possible retaliation from the EU. "I expect our projections to show lower inflation this year and next, but it is more interesting to see what happens after that period", Knot said.
Bloomberg
20-05-2025
- Business
- Bloomberg
ECB's Knot ‘Can't Rule Out' Another Interest-Rate Cut in June
European Central Bank Governing Council member Klaas Knot said another reduction in borrowing costs is possible next month, though stressed that it's 'too early' to make decisions without seeing fresh quarterly forecasts. The Dutch official said policymakers face a 'complicated constellation' of challenges. US trade policy represents both a negative demand shock and a negative supply shock, with the latter potentially stoking inflation in the medium term, he warned.
Bloomberg
13-05-2025
- Business
- Bloomberg
ECB's Knot Sees Trade Curbing Inflation and Growth in Near Term
Uncertainty stemming from US trade policy is likely to curb inflation and economic growth in the near term, though its effects on prices are less clear beyond that, according to European Central Bank Governing Council member Klaas Knot. The situation is prompting consumers to postpone spending as they're afraid that the economy will weaken and unemployment will rise, the Dutch central-bank chief told an event in Amsterdam. The stop-start nature of the US's trade initiatives is 'unambiguously bad' for economic activity, he said.
