Klaas Knot, a leading candidate to replace Christine Lagarde as European Central Bank (ECB) president, emphasized the need for a continued hawkish stance on monetary policy. Speaking on Wednesday, November 4, 2026, Knot warned that core inflation, driven by second-round effects in services and goods, remains a significant challenge for the ECB.
"Unfortunately, core inflation, so second-round effect via services and goods in the consumption basket, will probably also pick up, and is going to be a problem then also for the ECB," Knot said. He highlighted that small inflation shocks are likely to persist, necessitating a firm monetary policy response from the ECB.
Knot's remarks underscore the ECB's cautious approach to inflation management, even as economic conditions evolve. His comments come at a critical time, as the central bank navigates the delicate balance between controlling inflation and supporting economic growth.