"Because inflation was high for a long period, underlying inflationary pressures have built up," Knot said in a speech.
"It is likely that price pressures in these areas will prove more difficult to bring down."
"It is reassuring to see the first signs of recent monetary policy actually being transmitted to the real economy," Knot, an outspoken policy hawk, said.
"These are only the first, concrete steps in the transmission of our monetary policy tightening," Knot said.
The ECB also needed to mind stability considerations because the financial system needed to adjust to higher rates, Knot added.
Persons:
Klaas Knot, Christine Lagarde, Balazs Koranyi, Andrew Heavens
Organizations:
ECB, Thomson
Locations:
FRANKFURT, Dutch