ECB governing council member Knot across the wires 29 March
- comfortable with market expectations for ending QE in Q4 and rate hike Q2 2019
- market expectations and ECB view are converging
- normalisation will be gradual and slow
- relatively close to sustained adjustment in path of inflation
- recent euro appreciation not a big concern, it's mostly due to EZ strong economic performance
- new ECB guidance should focus on interest rates
- appropriate to start discussion on new guidance
- not concerned by softness in recent economic data
Knot seemingly a man in a bit of a hurry but nothing we don't already know.
EURUSD suitably unfazed at 1.2320 EURGBP 0.8762 EURJPY 131.22
