{"id":17161,"date":"2023-04-20T06:28:48","date_gmt":"2023-04-20T06:28:48","guid":{"rendered":"http:\/\/lynettelockhart.com\/client\/ecbs-knot-not-uncomfortable\/"},"modified":"2023-04-20T06:30:19","modified_gmt":"2023-04-20T06:30:19","slug":"ecbs-knot-not-uncomfortable","status":"publish","type":"post","link":"http:\/\/lynettelockhart.com\/client\/ecbs-knot-not-uncomfortable\/","title":{"rendered":"ECB&#8217;s Knot &#8216;not uncomfortable&#8217; with terminal rate market expectations"},"content":{"rendered":"<p>DUBLIN (Reuters) -European Central Bank (ECB) policymaker Klaas Knot is &#8220;not uncomfortable&#8221; with current market expectations which envisage interest rates rising to around 3.85% from 3% currently, the Dutch central banker told the Irish Times in an interview.<\/p>\n<p>The ECB is expected to raise rates for a seventh straight meeting on May 4 in a bid to bring down stubbornly high euro zone inflation, with policymakers converging on a 25-basis-point hike, even if a larger move is not yet off the table, sources with direct knowledge of the discussion have told Reuters.<\/p>\n<p>&#8220;We are now in what I would call mildly restrictive territory with policy rates, but inflation is not mild. Inflation is still much too high,&#8221; the newspaper on Thursday quoted him as saying.<\/p>\n<p>&#8220;Mildly restrictive territory will not be enough to counter an underlying inflation rate that has been creeping up towards 6%. We need a sufficiently restrictive stance. Where is sufficiently restrictive, I don&#8217;t know, but clearly not where we are today.&#8221;<\/p>\n<p>While euro zone inflation eased last month, underlying core inflation is at a stubbornly high 5.7%, raising worries in Frankfurt about the persistence of price pressures.<\/p>\n<p>&#8220;It&#8217;s too early to talk about a pause. For a pause, I would really need to see a convincing reversal in underlying inflation dynamics,&#8221; Knot added. <\/p>\n<p>ECB policymakers see underlying price growth accelerating for another few months before a plateau, and a meaningful decline may not come before the autumn.<\/p>\n<p> (Reporting by Padraic Halpin; editing by Jason Neely and Mark Potter)<\/p>\n<p><a href=\"http:\/\/lynettelockhart.com\/client\/ecbs-knot-not-uncomfortable\/file-photo-ecb-board-member-klaas-knot-appears-at-a-2\/\"><img decoding=\"async\" src=\"http:\/\/lynettelockhart.com\/client\/wp-content\/uploads\/Reuters_Direct_Media\/USOnlineReportEconomy\/tagreuters.com2023binary_LYNXMPEJ3J074-VIEWIMAGE.jpg\" alt=\"tagreuters.com2023binary_LYNXMPEJ3J074-VIEWIMAGE\"><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>DUBLIN (Reuters) -European Central Bank (ECB) policymaker Klaas Knot is &#8220;not uncomfortable&#8221; with current market expectations which envisage interest rates rising to around 3.85% from 3% currently, the Dutch central banker told the Irish Times in an interview. The ECB is expected to raise rates for a seventh straight meeting on May 4 in a [&hellip;]<\/p>\n","protected":false},"author":8,"featured_media":17162,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":""},"categories":[1216],"tags":[1223],"class_list":["post-17161","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-u-s-economy","tag-updated"],"jetpack_featured_media_url":"http:\/\/lynettelockhart.com\/client\/wp-content\/uploads\/Reuters_Direct_Media\/USOnlineReportEconomy\/tagreuters.com2023binary_LYNXMPEJ3J074-VIEWIMAGE.jpg","_links":{"self":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/17161","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/comments?post=17161"}],"version-history":[{"count":2,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/17161\/revisions"}],"predecessor-version":[{"id":17182,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/17161\/revisions\/17182"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/media\/17162"}],"wp:attachment":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/media?parent=17161"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/categories?post=17161"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/tags?post=17161"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}