ECB’s Knot: Policy in a good place now

European Central Bank (ECB) Governing Council member Klaas Knot said on Wednesday that the monetary policy is in a good place now.

Additional takeaways

Effects of inflation shocks waning.

Inflation still too high.

Slowdown clearly spilling over into services.

Mediutm term growth outlook more favourable.

Economy cooling desirable to tame inflation.

Have long road ahead on disinflation.

Restrictive policies will be needed for some time.

Stand ready to adjust rates further if disinflation stalled.