The European Central Bank should proceed with caution after a probable first reduction in interest rates in June, with quarterly data on wages likely to be key in determining further moves, according to Governing Council member Klaas Knot. “We will have to take a cautious approach after June,” Knot told Japan’s Nikkei newspaper in an interview, saying it’s “too early” to comment on the path beyond that meeting. “Every quarter, we will have an additional data point on the labor market going into a fresh round of projections and that will be an important piece of information for us to recalibrate our policy settings,” ... (full story)