ECB's Knot: Discussion starting point is that rise in rates reflect better growth, inflation prospects
Comments by ECB policymaker, Klaas Knot
The ECB communication on the recent surge higher in yields has been a bit of a perplexing one. On the one hand, they're adamant that they are not wanting to accept such developments and offering threats about tapping more into the PEPP envelope.
- Can be optimistic about economy in 2H 2021
- Market is pricing in cautious optimism on the outlook
On the other, there is also mention that such threats may be as far as they will go and then you also get remarks like the above. So, who's really in charge here?