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, signalling a likely hawkish tilt; he called the current prudent stance appropriate, urged taking necessary measures while minimising side effects, and said the ECB’s high

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, signalling a likely hawkish tilt; he called the current prudent stance appropriate, urged taking necessary measures while minimising 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.