ECB's Knot: ECB can end bond buys sooner if upside inflation surprises continue

Joel Frank Independent Analyst

European Central Bank governing council member and Dutch central bank head Klaas Knot said on Thursday that the bank could end its bond-buying programmes sooner if inflation continues to surprise on the upside. Knot added that it is now appropriate for the bank to prepare for gradual monetary policy normalisation and that the ECB is close to "mission accomplished" on inflation.

Market Reaction

Knot is a known hawk and it is known that he was one of the ECB members pushing for a greater acknowledgment of upside inflation risks at the last meeting, thus, the euro has not seen any reaction to the latest comments.

Author

Joel Frank

Independent Analyst

Joel Frank is an economics graduate from the University of Birmingham and has worked as a full-time financial market analyst since 2018, specialising in the coverage of how developments in the global economy impact financial asset

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