ECB Official Notes Market's Rate Cut Expectations

According to PANews, European Central Bank (ECB) Governing Council member Klaas Knot stated that the market has already anticipated a path for interest rate cuts. He emphasized the need to assess in December whether these expectations are overly optimistic. Knot highlighted that if there are upward inflation risks, the pace of policy tightening might be slower. He stressed the importance of keeping all options regarding interest rates open and making decisions on a meeting-by-meeting basis to maintain flexibility in rate choices. Despite the current economic situation in the Eurozone not being ideal, Knot believes it is not as dire as some suggest. He expects the Eurozone to achieve a soft landing and does not foresee a recession.