By David Milliken
WASHINGTON (Reuters) -The European Central Bank oughtto keep its alternatives open relatingto future interest rate moves, Dutch main bank chief and ECB Governing Council member Klaas Knot stated on Saturday, pressing back versus market bets that a December cut is a done offer.
Last week the ECB cut interest rates for the 3rd time this year and 4 sources close to the choice informed Reuters a 4th cut was mostlikely in December unless information turned around in the coming weeks.
However, on Thursday 3 ECB authorities attempted to cool speculation about rate cuts, and Knot included his voice to theirs at a conference of the Group of Thirty – a event of main lenders, commercial banks and academics – in Washington on the sidelines of the International Monetary Fund and World Bank yearly conferences.
“It is crucial that we keep all choices open. Retaining complete optionality would act as a hedge versus the materialization of dangers in either instructions to the development and inflation outlook,” Knot stated.
“We think that our meeting-by-meeting and information reliant technique has served us well,” he included.
Asked about the market’s expectations for rate cuts, Knot stated they had increased “quite drastically” following weak getting supervisors’ index and intake da