Dutch Central Bank chief skeptical of ECB rescue plan

Klaas Knot, President of the Dutch Central Bank (DNB), confirmed on Sunday that he voted against the exceptional support measures of the European Central Bank (ECB). He said this in the television program Buitenhof.

Knot did not support pumping 1,100 billion euro into the market because he was not convinced of "the necessity and effectiveness". Knot pointed to the multiple rounds of so-called quantitative easing in the United States and other countries. "If you're already of the opninion that it worked there, that alleged success can not just be projected on the euro zone."

Knot labeled the new measures, which are among the latest tools of the ECB, as a palliative. He would have preferred that they rather further look into the basis of the low inflation. In addition, the concerns about deflation (a long period of price cuts), were not acute enough to intervene in yet, according to Knot.

According to Knot, the fall in oil prices are "a gift", as well as the cheaper euro. Knot expects that both elements will have a good effect on the economy and that there will be room for tax windfalls.

 

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