- ECB’s Knot: Rate path priced by markets can be self-defeating
Market news
17 January 2024
ECB’s Knot: Rate path priced by markets can be self-defeating
European Central Bank (ECB) Governing Council member Klaas Knot said on Wednesday, “the rate path priced by markets can be self-defeating.”
Additional comments
Markets are getting ahead of themselves on rate cuts.
A lot must go well for inflation to hit 2.0% in 2025.
We need to see a turnaround in wages.
Policy easing, if and when it happens, will be very gradual.
The more easing markets are doing, the less likely we'll cut.
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