European Central Bank member says market is mispricing rate hikes, expects more to come

Recent data has shown a slowdown in headline inflation, even if it remains well above the ECB's 2% target. December inflation came in at 9.2% in the euro zone, according to

preliminary numbers. This was the second consecutive monthly drop in prices across the euro zone. DAVOS, Switzerland — The European Central Bank will not stop with one single 50

basis point hike at its next rate-setting meetings, a board member told CNBC Thursday. "It will not stop after a single 50 basis point hike, that's for sure," Klaas Knot,

who serves as the governor of the Dutch central bank, said regarding the ECB's upcoming moves. The European Central Bank raised rates four times throughout 2022, bringing

its deposit rate to 2%. The central bank in December said it would be increasing rates further in 2023 to address sky-high inflation. Recent data has shown a slowdown in

headline inflation, even if it remains well above the ECB's 2% target. December inflation came in at 9.2% in the euro zone, according to preliminary numbers. This was the

second consecutive monthly drop in price rises across the euro zone. However, Knot doesn't think all of the recent data is "encouraging." "What we have seen thus far is data

that is not encouraging from our end," he said at the World Economic Forum in Davos.