ECB's Knot urges 'significant' steps at next two policy meetings

"We need at least two" more "significant rate hikes," Knot said Monday at a financial-stability presentation in Amsterdam. He doesn't expect QT to start before 2023

The European Central Bank should take “significant steps” at its next two interest-rate meetings, according to Governing Council member Klaas Knot, who’s part of a hawkish group that’s raising expectations of a second straight three-quarter-point hike in October.

The Dutch central bank chief said the ECB must finish the “normalization” of borrowing costs before it can turn its attention to discussing how to shrink the trillions of euros of bonds it purchased during recent crises -- a process known as quantitative tightening.

“We need at least two” more “significant rate hikes,” Knot said Monday at a financial-stability presentation in Amsterdam. He doesn’t