(Updates with further detail, paragraphs 2-3, quote paragraph
4)
AMSTERDAM, May 7 (Reuters) - The European Central Bank's
interest rate hikes are starting to have an effect, but more
will be needed to contain inflation, Dutch Central Bank
President Klaas Knot said on Sunday.
Knot, who is also on the ECB's governing council and is
known as a hawk, said he had agreed with the ECB decision on
Thursday to slow the speed of rate hikes to 25 basis points, or
0.25%
But, speaking on Dutch television, he said he still could
support the lifting of rates to 5% from the current 3.25%, or
even higher - if inflation proves more persistent than he
expects.
"Our policy works with a certain delay, so the biggest
effects of what we have done so far are still in the pipeline,"
Knot said in interview on the programme Buitenhof.
(Reporting by Toby Sterling; editing by Barbara Lewis)
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