ECB’s Knot: Monetary policy needs greater flexibility, already in mandate

Speaking at an event in Vienna, ECB governing council member Klaas Knot spoke on the central bank’s monetary policy stance, which is expected to remain accommodative until the end of 2020.

Key Quotes via Reuters:

“Mon pol needs greater flexibility and that is already in our mandate”

“Medium-term does not mean the end of the projection horizon”

“Medium-term is a flexible concept depending on the depth of a shock”

“Shock was deeper than any in the last 80 years and was amplified by fragmentation”

“There's a clear limit to how much mon pol can stimulate credit if regulated tighter”

“In communication there's a disconnect between policy makers and markets”

“Accommodation will be with us until the end of 2020 thanks to the reinvesting of assets bought”

“It's dangerous for banks to become captive of market expectations about what's next”