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Knot Headline Corrections Works Against Dovish Interpretation

ECB
  • Bloomberg issue a correction to an earlier headline on ECB's Knot, clarifying that he said "2% 2024 inflation view is 'optimistic'", correcting earlier reporting that he'd stated he was "optimistic to see inflation hitting 2% in 2024".
  • The clarification works slightly against the dovish interpretation of his initial comment, but has prompted little market reaction.
  • Separately, BBG cite sources in reporting that ECB officials see the communications aspect as being the toughest challenge for their July meeting. The piece writes that the Bank are unlikely to signal a definite hike or pause ahead, with the guidance likely to state that next meetings hinge on data turnouts.

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