European Central Bank committee member Knot said "It cannot be ruled out" the possibility of another interest rate cut in June.
Klaas Knot, a member of the European Central Bank's Governing Council, stated that it is possible to further reduce borrowing costs next month, but emphasized that it is "too early" to make a decision without seeing the latest quarterly forecasts. The Dutch official described policymakers as facing a "complex challenge." He warned that US trade policies not only create demand shocks but also supply shocks, which could potentially increase inflation in the medium term. "We are still waiting for the latest forecasts," Knot told reporters in Amsterdam. "Therefore, I cannot rule out the possibility of another interest rate cut in June, but I cannot confirm it either, as we must also consider medium-term factors."
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