“In this environment with significant uncertainty about the supply side of the economy, it is important keep all options open,” Knot, who heads the Dutch central bank, said on Saturday in Washington. “Retaining full optionality would act as a hedge against the materialization of risks in either direction to the growth and inflation outlook.”

The European Central Bank should keep its options open regarding future interest rate moves, Dutch central bank chief and ECB Governing Council member Klaas Knot said on Saturday, pushing back against market bets that a December cut is a done deal.

The neutral rate is seen by economists at around 2% or 2.25%. Lagarde argued that it was probably higher now than a few years ago, but below the current rate, which was still clearly restrictive. "So if you were to ask me today, 'Where is it?', the honest answer is, I don't know," Lagarde said.