"ECB Members Warn of Self-Defeating Market Moves on Rate Cuts"

European Central Bank member Klaas Knot cautioned that market expectations for rate cuts are excessive and could be "self-defeating," as the ECB's projected interest rate path contains less easing than currently priced in. Other ECB officials at Davos have also pushed back on expectations for rate cuts, with some suggesting that rates may not move lower at all this year. Knot emphasized the need for gradual adjustments to policy and the importance of monitoring inflation risks, indicating that any rate cuts may come later than anticipated.