Central Banks
ECB’s Knot Says Markets Risk Underplaying Hiking Chances
- Bringing inflation to 2% by the end of 2025 is ‘bare minimum’
- Rate hike is a possibility, not a certainty, official says
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Investors largely betting against a European Central Bank interest-rate increase next week are “maybe” underestimating the likelihood of it happening, according to Governing Council member Klaas Knot.
While a slowdown in the euro zone’s 20-nation economy is sure to damp demand, updated inflation projections won’t differ much from the last round in June, the hawkish Dutch central bank chief said.