During a speech in Brussels on Thursday, European Central Bank Governing Council member Klaas Knot said it’s not unlikely that 2024 interest rate-cut bets will have to be adjusted.
Additional quotes
“Financial markets are already pricing in interest-rate cuts for next year.”
“If they have to adjust this expectation, which is not unlikely, this could lead to new corrections.”
“It's time to rethink liquidity buffers after the collapse of SVB.”
Market reaction
Hawkish ECB commentary is helping the Euro recover its footing against the US Dollar, sending EUR/USD back above 1.0700.