ECB Governing Council member Klaas Knot said, “At this point, the dominant worry is inflation. That is why normalization of policy, the withdrawal of stimulus is the appropriate policy response.”
He expected the asset purchases to end by the end of the year. “That means September should be available (for a rate hike),” Knot said. “Not that I expect rates will have to go up in September.”
“A rate hike in the fourth quarter to me still is a realistic expectation… but by no means a certainty, he added.
