ECB Governing Council member Klass Knot told German newspaper Handelsblatt that there has been a “cooling off” in the economy. But he emphasized there is “no recession or crisis”. Robust demand and wage growth in Eurozone meaned growth would pick up again soon. He, as known hawk, remains in favor of policy normalization ahead.
Knot also saw TLTRO III as a “bridge” to “ease transition to market financing. That is, the new programs conditions will be “less advantageous than before”. He noted that ECB should avoid the need on TLTRO IV or V in a few year’s time.
