ECB’s Knot backs one or two more rate cuts this year
2024.06.20 05:51
FRANKFURT (Reuters) – European Central Bank policymaker Klaas Knot on Thursday backed market expectations for one or two more interest rate cuts this year as inflation appeared to be headed towards the ECB’s 2% target.
The ECB began undoing its steepest ever streak of rate hikes earlier this month but left options open as to what it would do next, also in light of stronger-than-expected inflation and wages data in recent weeks.
Knot said the “just under three” cuts priced in by financial markets for 2024 were “broadly in line” with the optimal policy path calculated by his staff at the Dutch central bank.
“We can continue to slowly but surely lift our foot off the brake,” Knot told an event in Milan, according to prepared remarks.
