ECB's Knot Expects a Rate Hike as Soon as October

The transcript discusses the European Central Bank's (ECB) potential rate hike, with Klaas Knot expecting it as early as October. The ECB's recent hawkish pivot, led by President Christine Lagarde, has led to significant market repricing. Previously, the ECB was not expected to raise rates until 2023, but recent developments suggest a rate hike could occur this year. The discussion also covers the impact of these changes on European debt markets, particularly in Italy and Greece, and the potential risks associated with a faster ECB tightening cycle.

What factors are influencing the timing of potential rate hikes by the ECB?

What are the implications of a faster pace of ECB tightening on European corporate debt?