ECB's Knot: Current inflation outlook poses no threat to price stability

Comments from the ECB's Knot

• Absent deflation risk, phasing out asset purchases is warranted from Sept 2018 onward
• Fear or relapse into deflation due to premature QE exit is overdone
• Despite undershooting inflation in the near term, the ECB is fulfilling its mandate

It's like a cruise ship turning but the rhetoric is slowly getting more hawkish.