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Interesting comments from Klaas Knot in the FT, calling for - surprise, surprise - patience and prudence when it comes to ECB normalisation.
Also, he's running: "If I was asked to be available, I would formulate an answer then." ft.com/content/d42d5c…
Also, he's running: "If I was asked to be available, I would formulate an answer then." ft.com/content/d42d5c…
Couple of points.
1. "Knot told the FT that the central bank needed to gauge how badly the economy was faring before pressing ahead with phasing out its programme of buying bonds". Whaat? Net purchases are over, reinvestments are going on, nothing to see here.
1. "Knot told the FT that the central bank needed to gauge how badly the economy was faring before pressing ahead with phasing out its programme of buying bonds". Whaat? Net purchases are over, reinvestments are going on, nothing to see here.
2. Knot: "We will have to be patient and also modest with respect to the precise moment at which we can expect inflation to converge toward [2%]".
Now that's the ECB's big shift, from "without undue delay" to "patience and persistence" in 2017-18.
Now that's the ECB's big shift, from "without undue delay" to "patience and persistence" in 2017-18.
