- Analytics
- News and Tools
- Market News
- ECB’s Knot sees first interest rate hike in the Q4 2022
ECB’s Knot sees first interest rate hike in the Q4 2022
Klaas Knot, the Dutch Central Bank President and a member of the European Central Bank's governing council, said on Sunday, per Reuters that he expects the ECB to raise interest rates in the fourth quarter of this year.
The ECB policymaker appeared on Dutch television program Buitenhof ECB’s Knot said that he supported winding down the Eurozone central bank's asset purchasing program as quickly as possible.
Additional quotes
Personally I expect our first rate increase to take place around the fourth quarter of this year.... Normally we would raise rates by a quarter percentage point, I have no reason to expect we would take a different step.
A second rate hike would follow the first one in short order, likely in the first quarter of 2023.
The bank must first end its asset purchasing programs, currently set to be wound down in steps to 20 billion euros per month by the fourth quarter. However, since Thursday bond markets have begun pricing in around 40 basis points of rate hikes by December.
FX reaction
Given the early hours of Asia, market players are yet to react to the news. However, the recent challenges to the risk appetite could join the chatters of hawkish monetary policies to exert downside pressure on the Antipodeans.
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
