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

Source Fxstreet

In an interview with Bloomberg on Thursday, European Central Bank (ECB) Governing Council member Klaas Knot said that he expects a "cautious slide" in key rates after June.

Knot added that they can't rule out small rebounds in inflation in Germany in some months this year. Nevertheless, he noted that he is increasingly confident about the disinflation process and said that he is not uncomfortable with the market pricing of ECB rate cuts.

Market reaction

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

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