ECB's Knot says ECB's monetary policy is reaching its limits

ECB and Dutch CB head Klaas Knot comments after their annual report

• QE expansion makes the risks of side effects higher
• It may take longer to get back to the ECB's inflation target than the 18-24 months taken into consideration
• Technically it's always possible to do more but you have to weigh the added value with the side effects, I have my doubts about that
• On structural reforms, the ball is now clearly in the court of the politicians

Knot was one of two dissenters of ECB action at the last meeting and today it was announced that the Dutch will be putting aside €3.8bn to cover potential losses from the ECB's QE program.