ECB's Knot: Markets may be underestimating September rate hike chances

<ul><li>Bringing inflation to 2% by the end of 2025 is the bare minimum</li><li>Rate hike is a possibility, not a certainty</li></ul><p>He touts the headline but then goes on to say that is is just merely a 'possibility'. That's no firm conviction that policymakers are leaning towards a rate hike and so far, their posturing and language isn't really all too keen either. Currently, markets are just pricing in ~32% odds of a 25 bps rate hike for next week.</p>

This article was written by Justin Low at www.forexlive.com.