Brussels: Europe and the Arabs
Clasch Knut, President of the Dutch Central Bank, said that the interest rate hikes implemented by the European Central Bank are beginning to bear fruit, but more will be required to contain inflation, according to Sky News. Knut is also a member of the European Central Bank's Governing Council.

At its last meeting last week, the European Central Bank raised interest rates by 25 basis points, to reach the level of 3.75 percent, in line with expectations, in the seventh consecutive increase since last year, with the aim of controlling inflation. According to what was reported by the Middle East News Agency, this was the first time that the European Central Bank eased the pace of interest rate hikes during the current year.

The European Central Bank raised rates in December, February and March by half a percentage point each month.

The move was similar to what was taken by the US Federal Reserve, on Wednesday, which increased interest rates by 25 basis points, bringing interest in the largest economy in the world to the range of 5 to 5.25 percent.

The bank kept its options open on future moves, as it continues its battle to combat high inflation in the eurozone, but did not mention the need for further increases.

The Central Bank made it clear in its statement that inflation expectations “remain high for a very long time.”

He added that although headline inflation has fallen in recent months, underlying price pressures "remain strong".