A candidate to succeed Christine Lagarde warned that economic and geopolitical
turmoil — combined with financial fragmentation and repeated negative supply
shocks — may force the ECB toward a somewhat tighter policy bias. Klaas Knot
said the ECB may need to “approach the 2% target from above rather than from
below” more often, signaling a likely hawkish tilt; he called the current
prudent stance appropriate, urged taking necessary measures while minimizing
side effects, and said the ECB’s high credibility is an asset. Knot previously
served as governor of the Dutch central bank and spent 14 years on the ECB
Governing Council.
