ECB's Knot: Restart of QE is not in-line with economic circumstances
ECB governing council member, Klaas Knot, lashes out against the stimulus package that was introduced yesterday
- Stimulus package is disproportionate to economic situation
- There are sound reasons to doubt effective of ECB package
- There are no risks of deflation, no signs of a recession
Those are some fighting words and this really calls into question what is going on in the background of the ECB going into yesterday's decision. It is not to say that Knot didn't have a say as he was part of the voting rotation to the decision yesterday.
His full statement can be found here. Central bank drama... I don't think this will have much effect to dampen or give rise to the euro but it sure makes for more intriguing decision-making and expectations going forward.
I mean he's not wrong that there are valid reasons to question the stimulus package and QE but no risks of a recession? That's a bit much, mate.