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.