ECB’s Knot sees greater risk of them acting too slow rather than too quick in normalising policy

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