ECB’s Knot: Central bank will significant interest step again in October

Dhwani Mehta FXStreet

“The European Central Bank (ECB) will have to take significant interest step again in October,” policymaker Klaas Knot said on Monday, adding that it's “too early to say how big step needs to be.”

Additional quotes

Markets seem to underestimate the upward risks in the inflation outlook.

Expect inflation to go down in 2023, but the question is how fast.

Expect significant moves by ECB will be needed in 2023 to get inflation down.

Risks of second-round wage effects on inflation will increase.

At least 2 meetings before quantitative tightening.

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Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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