ECB's Knot: Not uncomfortable with market pricing of rate cuts

Eren Sengezer FXStreet

In an interview with Bloomberg on Thursday, European Central Bank (ECB) Governing Council member Klaas Knot said that he is not uncomfortable with the market pricing of ECB rate cuts, adding that he is increasingly confident about the disinflation process.

Meanwhile, ECB policymaker Joachim Nagel said that he expects a "cautious slide" in key rates after June. Nagel further noted that they can't rule out small rebounds in inflation in Germany in some months this year.

Market reaction

EUR/USD showed no reaction to these comments and was last seen fluctuating in its narrow daily range above 1.0650.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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