President Klaas Knot of De Nederlandsche Bank (DNB) does not regret his recent criticism of the monetary policy of the European Central Bank (ECB). Knot says that he deliberately chose to make a statement shortly after the interest rate decision in September in which he made his own position clear.
In it, Knot openly doubted the effectiveness of the ECB's measures to give a boost to the eurozone economy. He also stated that the measures are disproportionate to the current economic conditions.
In addition to Knot, German central banker Jens Weidmann also spoke critically about the course of the ECB. Their reactions caused a stir in the financial world. The buy-out decision was the last decision of ECB President Draghi before his retirement date.
On Thursday morning, the Financial Times also revealed that the ECB's decision to restart the buy-back program after nine months went against the advice of the central bank's monetary policy committee. That committee did not believe that monetary easing was very useful because the interest rate is already at unprecedented low levels.
Others, on the other hand, say that the Finance Ministers, with their open criticism, are trying to get a better grip on the (now still: autonomous) policy of the ECB. Christine Lagarde will soon take over from ECB President Mario Draghi.
Dutch bank director Knot believes that there will be a need for a revision of the central bank's strategy. & #8220; Everyone is convinced of that & #8221 ;, says Knot.