Remarks by ECB policymaker, Klaas Knot

  • ECB likely to end PEPP purchases in March next year
  • Inflation outlook is better than before the pandemic
  • That should guide decision on bond purchases
  • Inflation should decline in 2022
  • But if market is right on inflation, then it is also right on rates pricing
  • Sees ECB lift off some time after 2022

Well, with Weidmann stepping down, Knot is arguably the leading face among the ECB hawks and his remarks above serve as a good reminder of that.