source agencies
Clas Knut, a member of the European Central Bank’s Governing Council, said that the cycle of tightening monetary policy and increasing interest rates in the European Central Bank has only passed half, and it should continue for a longer period.
The “Financial Times” quoted him as saying that the European Central Bank would achieve “a very reasonable pace of tightening monetary policy,” by increasing interest rates by half a percentage point over the next several months before interest rates peak next summer.
He added that the risks resulting from slowing down the pace of interest rates at the present time are still great, and “we are still at the beginning of the second half” of the cycle of tightening monetary policy, noting that the risks of financial stability have become “more clear on our radar screen now.”
The newspaper stated that the “primary challenge” for the European Central Bank next year will be to make the decision to bring the tightening monetary policy cycle to an end.