ECB: Knot Concludes MNI Webcast, Flags Pace of Hikes Could Persist Beyond March

Knot Webcast with MNI now concluded, highlights include:

• Sees current pace of hikes warranted into May should underlying inflationary pressures not materially abate
• Retained view that bigger risks remain surrounding not doing enough on rates
• Noted that sticky price rises, particularly in services, could see core inflation continue to rise even as falling energy prices contribute to a decline in headline inflation
• A crossover in average euro area measures of HICP inflation and inflation excluding energy and food is "well possible… the likelihood is clearly there"
• On quantitative tightening, commented that he is optimistic about the market's capacity to absorb QT