Knot Pushes Back Against Market Pricing Of Rate Cuts

ECB Governing Council member Klaas Knot told ANP that officials are likely to keep interest rates at their current high level for at least a year, sticking to his typically hawkish stance.

• Furthermore, Knot did not rule out a further rate hike if conditions mean that such a move is required to curb inflation.
• He went on to stress that “the market is pricing in another rate cut for the middle of next year. But I think that is still too early.”
• Further out, he suggested that interest rates “are not going back to the low levels of the 2010s for the time being. That was the exception.”