CM Trade

Download APP to receive bonus


Knott: There is an even chance that the ECB will raise rates or pause in September


  Governing Council member Klaas Kernot, president of the Dutch Central Bank (NED), said markets may be underestimating the likelihood of a rate hike by the European Central Bank (ECB) next week, as the central bank's inflation forecast at this meeting should be about the same as in June.

  In an interview with Bloomberg, he said: "In this case, a rate hike or a pause would be an even decision." I continue to believe that achieving a 2 percent inflation target by the end of 2025 is the minimum we must achieve. Obviously, I would be uncomfortable with any development that pushed the deadline further back. I wouldn't mind if it moved up a little bit."

  He added: "We have entered the refined phase of this tightening cycle. Further rate increases are still possible but not inevitable."

  On the recent poor performance of major economic indicators, he said: "I would caution against being too pessimistic. We're talking about weakness. We are not talking about an outright recession."

  On inflation conditions and the outlook, he said: "Underlying price pressures appear to have levelled off and will decline markedly in the coming months." A marked slowdown in wage growth is essential to achieve the inflation target of 2 per cent by the end of 2025. If I look at the results of the current wage negotiations, it is far from our goal. Inflation expectations remain well anchored, although some are at the upper edge of our comfortable range."

The above information is provided by special analysts and is for reference only. CM Trade does not guarantee the accuracy, timeliness and completeness of the information content, so you should not place too much reliance on the information provided. CM Trade is not a company that provides financial advice, and only provides services of the nature of execution of orders. Readers are advised to seek relevant investment advice on their own. Please see our full disclaimer.

Free Access
Daily Trading Strategy
Download Now

CM Trade Mobile Application

Economics Calendar


You May Also Like