Ecb Governing Council Member Says Excessive Government Spending Could Lead To Higher Interest Rates

Excessive government spending hampering ECB's work, Knot says

ECB Governing Council member says excessive government spending could lead to higher interest rates

Excessive government spending is making the European Central Bank's work more difficult, according to Governing Council member Klaas Knot. In an interview with Bloomberg, Knot said that governments need to be more disciplined in their spending in order to avoid putting upward pressure on inflation and interest rates.

Knot's comments come as the ECB is facing increasing pressure to raise interest rates in order to combat rising inflation.

The ECB has kept interest rates at record lows for years in an effort to stimulate economic growth. However, inflation has been rising in recent months, and the ECB is now under pressure to raise rates in order to bring it back under control.

Knot said that excessive government spending is one of the factors that is contributing to rising inflation. He said that governments need to be more disciplined in their spending in order to avoid putting upward pressure on inflation and interest rates.

Knot's comments are likely to add to the pressure on the ECB to raise interest rates.

The ECB is scheduled to meet on September 8th to discuss interest rates. It is widely expected that the ECB will raise rates at that meeting.