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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