U.S. markets closed
  • S&P 500

    3,693.23
    -64.76 (-1.72%)
     
  • Dow 30

    29,590.41
    -486.27 (-1.62%)
     
  • Nasdaq

    10,867.93
    -198.88 (-1.80%)
     
  • Russell 2000

    1,679.59
    -42.72 (-2.48%)
     
  • Crude Oil

    79.43
    -4.06 (-4.86%)
     
  • Gold

    1,651.70
    -29.40 (-1.75%)
     
  • Silver

    18.83
    -0.78 (-3.99%)
     
  • EUR/USD

    0.9693
    -0.0145 (-1.47%)
     
  • 10-Yr Bond

    3.6970
    -0.0110 (-0.30%)
     
  • GBP/USD

    1.0857
    -0.0398 (-3.54%)
     
  • USD/JPY

    143.3300
    +0.9950 (+0.70%)
     
  • BTC-USD

    18,990.85
    -144.24 (-0.75%)
     
  • CMC Crypto 200

    434.61
    -9.92 (-2.23%)
     
  • FTSE 100

    7,018.60
    -140.92 (-1.97%)
     
  • Nikkei 225

    27,153.83
    -159.30 (-0.58%)
     

ECB’s Knot Says Up to Three-Quarter-Point Hike Needed Next Month

·1 min read
ECB’s Knot Says Up to Three-Quarter-Point Hike Needed Next Month

(Bloomberg) -- European Central Bank Governing Council member Klaas Knot said he supports an interest-rate increase of as much as 75 basis points at next month’s meeting.

Most Read from Bloomberg

“The inflation problem in Europe at the moment is so big that I think our job is to raise interest rates every six weeks until the inflation picture stabilizes around 2%,” Knot, an ECB hawk, said in an interview with Dutch broadcaster NOS.

Knot said European central bankers are considering raising interest rates faster to tackle high inflation. He called for a rate hike of at least 50 basis points in September, echoing fellow Council member Robert Holzmann, who voiced concern that upward price pressures are becoming entrenched.

Three-Quarter-Point ECB Hike Should Be Debated, Holzmann Says

In the face of record inflation, the ECB raised rates for the first time since 2011 last month, opting for a half-point hike that was bigger than analysts expected. With data due next week set to show euro-area prices jumped by 9% in August -- another all-time high -- pressure is building for tougher action, akin to that deployed by the Fed.

Traders are currently assigning an almost 50% likelihood of the next rate move being more than 50 basis points. European bonds slumped Friday on the prospect of a three-quarter-point hike.

“We really need to focus on inflation and take the consequences for our economic activity for a while,” NOS cited Knot as saying.

Most Read from Bloomberg Businessweek

©2022 Bloomberg L.P.