Klaas Knot, president of De Nederlandsche Bank Photo ANP
President of De Nederlandsche Bank (DNB), Klaas Knot acknowledged Sunday in the TV program Buitenhof that inflation is low in the eurozone. He added, however, that core inflation, which the oil is disregarded, is stable for a year.
Knot confirmed in the program also that he voted against the exceptional support of the European Central Bank. The Telegraph reported that last week, according to insiders.
The central banker has to pump more than EUR 1,100 billion is not supported in the market because he was not convinced of “the necessity and effectiveness.” Knot thereby pointed to the multiple rounds of so-called quantitative easing in the US and other countries. “If you’re already believe that it worked there, that alleged success is not just projecting on the eurozone.”
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Knot labeled the new measures, the latest tools of the ECB, as a palliative. He would have preferred that it was to seek the basis of low inflation. Moreover, concerns about deflation, a prolonged period of falling prices, according Knot were not acute enough to interfere in now.
The fall in oil prices above Knot “a gift”, as well as the cheaper euro. Knot expects both elements, the economy will do well and that there is room for tax windfalls.
The DNB president also dwelt on the Greek elections and suggested that the outcome does not change the challenges facing Greece is. It is according Knot not raised that the country gets out of the euro
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