Central Banks
ECB’s Knot Sees ‘Multiple’ Half-Point Hikes to Tame Prices
- Markets may be underestimating tightening, Dutch official says
- Slowing inflation clouds path for European borrowing costs
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European Central Bank Governing Council member Klaas Knot said there’ll still be more than one half-point increase in interest rates, with the inflation situation remaining unsatisfactory.
Investors, who’ve been softening bets on monetary tightening, may be underestimating the ECB’s commitment to tame prices, Knot told CNBC on Thursday. Policymakers are focused currently on the risk of doing too little, he said.