ECB's Knot: Overall inflation has been above our definition of price stability for several months

Haresh Menghani FXStreet

Adding to his earlier comments, the Dutch central bank head and ECB's Governing Council member Klaas Knot was further noted saying that overall inflation has been above out definition of price stability for several months and the outlook seemed unaffected by Italy.

Additional quotes:

• ECB is not there to compensate national policies.
• No reason to feel uncomfortable with market expectations for 2-3 years and APP reinvestments.
• We could say something about the possible number of interest rate hikes per year, we could do it like the Fed.

The comments did little to ease the prevalent bearish sentiment surrounding the shared currency, with the EUR/USD pair sliding farther below the key 1.1500 psychological mark to the lowest level since August 20.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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