European Central Bank Governing Council member Klaas Knot said on Tuesday that he can’t rule out another rate cut in June, but also can’t confirm it, emphasising the need to assess the medium-term outlook before making any decision. The official added that the ECB has to focus on the medium to long term, where the impact from U.S. trade policies on inflation is a lot more uncertain than in the short term.
Knot also said that he awaits the upcoming ECB staff projections, which are expected to show lower inflation for this year and next but the more critical insight will be what the forecasts indicate beyond that period.