ECB’s Knot Says 2024 Rate-Cut Bets May Have to Be Adjusted

European Central Bank Governing Council member Klaas Knot said it’s “not unlikely” that investors will have to adjust their expectations for borrowing costs to be lowered in 2024.

“Financial markets are already pricing in interest-rate cuts for next year,” Knot said Thursday in a speech in Brussels. “If they have to adjust this expectation, which is not unlikely, this could lead to new corrections.”