The European Central Bank's Governing Council member Klaas Knot said on Wednesday that headline inflation in the Eurozone appears to have peaked.
However, the policymaker noted that keeping current pace of rate hikes into May could well be needed if underlying inflation does not materially abate. "Once we see a clear, decisive turn in underlying inflation dynamics, I expect ECB to move to smaller steps," he added.
Also, Knot said that he sees no recession in winter. In his opinion, slowdown in growth seems even more shallow and short-lived than expected. Meanwhile, a sharp decrease in energy prices could bring down headline inflation faster than projected by the ECB.