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Remarks by ECB policymaker Klaas Knot

  • ECB Expected to End PEPP Purchases in March of Next Year
  • Inflation outlook is better than before the pandemic
  • This should guide the decision on bond purchases
  • Inflation is expected to fall in 2022
  • But if the market is right about inflation, then it’s also right about prices
  • The ECB takes off after 2022

Well, with Weidmann’s resignation, Knot is arguably the leader among the ECB hawks and his remarks above are a good reminder of that.

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