ECB's Knot: Policy is in a good place now

<ul><li>Inflation is still too high</li><li>But effects of inflation shock are waning</li><li>Economic cooldown desirable to tame inflation</li><li>Restrictive policy will be needed for some time</li><li>Stands ready to adjust rates further if disinflation process stalls</li></ul><p>For one of the more hawkish members to tout more neutral policy, it says a lot about the current stance by the ECB. The question now is if the slowdown worsens at a much greater pace, how soon will it be before rate cuts come along? They aren't saying it yet but that is the take by markets right now.</p>

This article was written by Justin Low at www.forexlive.com.