The European Central Bank (ECB) Governing Council member and President of De Nederlandsche Bank (DNB), Klaas Knot, said on late Monday that Eurozone inflation is easing towards the 2% target, and geopolitical tensions pose minor threats, but the ECB should still exercise caution when cutting interest rates beyond a first step in June, per Reuters.  

Key quotes

"I am increasingly confident in the disinflation process.”

“Eurozone inflation is falling towards 2%.”

“Geopolitical stress poses only moderate risks.”

“June rate cut remains realistic if price and wage data continue to come in line with projections.”

"After June, I would say: no pre-commitment to any specific time path.”

“We will have to take a cautious approach after June.”

“Every quarter, we will have an additional data point on the labor market going into a fresh round of projections and that will be an important piece of information for us to recalibrate our policy settings.”

“The experience of the US in the last three months has reminded us that we should still be vigilant.”  

“It may well be only in the course of 2025 that this condition can be established