Klaas Knot has become the first member of the European Central Bank governing council to say publicly it should raise interest rates this year, warning that eurozone inflation will stay at 4 per cent for most of this year.
The Dutch central bank governor called for the ECB to end its net bond purchases “as soon as possible” in preparation for raising interest rates in the fourth quarter, which would be the first time it has done so in over a decade.
His comments, in an interview with Dutch television programme Buitenhof, came only days after ECB president Christine Lagarde refused to rule out raising interest rates this year, signalling that next month it could accelerate plans to end net bond purchases.
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