The European Central Bank's (ECB) upcoming policy meeting in June will be highly complex as policymakers weigh inflation risks arising from US tariffs, Dutch central bank governor and ECB Governing Council member Klaas Knot said in an interview with Dutch financial daily FD according to Reuters. "In the short term, it's 100 per cent clear that the demand shock will dominate, so inflation will go down," Knot said, referring to the impact of tariffs imposed by US President Donald Trump. "But the ECB looks at inflation risks in the middle to long term. In the longer term, inflation risks are definitely two-sided. I think the June meeting will be really complex," he added. ECB policymakers are increasingly confident about cutting interest rates again in June as inflation continues to ease, six sources told Reuters last week. Many governors now see rising chances of an eighth consecutive quarter-point cut at the 4 June meeting, when the ECB will also update its economic forecasts. The ECB earlier this month trimmed its benchmark rate to 2.25 per cent. Attribution: Reuters Subediting: M. S. Salama
