January 24, 2020 / 9:13 AM / a month ago

ECB's Knot says further rate cuts would have less impact: CNBC

FILE PHOTO: ECB board member Klaas Knot appears at a Dutch parliamentary hearing in The Hague, Netherlands September 23, 2019 REUTERS/Eva Plevier

FRANKFURT (Reuters) - The European Central Bank could push its policy rate farther below zero but every further cut would have less of an impact on the economy as well as having large side effects, ECB policymaker Klaas Knot said on Friday.

“There is the possibility to go further negative but we also know that is decreasing return to scale,” Knot, the Dutch central bank governor, said on CNBC.

“We also know that there are important side effects that we need to take into account.”

Reporting By Francesco Canepa; Editing by Kevin Liffey

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