ECB Governing Council member Klass Knot said, “we need at least two more significant hikes before we enter the range of plausible estimates for neutral… That’ll take us into next year.”
“This problem will not go away with a little of slowdown in the economy — it will require continued effort from our side, and the Council is unanimous on that,” he said.
“The way the Fed is dealing with QT — that’s clearly also going to be an example for us, they managed to move it into the background very quickly,” Knot said. “A process like QT — it should be predictable, it should be gradual, it should be even a little bit boring.”
