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MNI BRIEF: Rate Cuts To Neutral If Inflation At Target - Knot

If inflation returns to its 2% symmetric target the ECB can cut rates to neutral, ECB policymaker Klaas Knot says.

MNI (BRUSSELS) - Dutch National Bank President Klaas Knot said Wednesday that if inflation returns to its 2% target next year the ECB can continue to cut rates until they reach their neutral level.

"We are pretty confident about the return of inflation to our 2% target somewhere in the course of next year. I would also say that I see the risks surrounding that baseline reasonably contained I would say," Knot, a member of the ECB's Governing Council said.. 

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MNI (BRUSSELS) - Dutch National Bank President Klaas Knot said Wednesday that if inflation returns to its 2% target next year the ECB can continue to cut rates until they reach their neutral level.

"We are pretty confident about the return of inflation to our 2% target somewhere in the course of next year. I would also say that I see the risks surrounding that baseline reasonably contained I would say," Knot, a member of the ECB's Governing Council said.. 

Keep reading...Show less