ECB's Knot: Current inflation outlook poses no threat to price stability
ECB policymaker Klaas Knot was out on the wires in the last minutes, arguing that the current inflation outlook would not pose any threat to the price stability.
Key quotes (via Reuters)
Despite undershooting its inflation aim in the near-term, the ECB is thereby fulfilling its mandate.
Absent deflation risk, a full phasing-out of net asset purchases from September 2018 onwards is warranted.
Fear of relapse owing to an alledgedly premature discontinuation of app seems rather overdone.
Continuing app for fine-tuning inflation rates suggests "debatable" degree of control over process.