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ECB's Knot Says Economy Doesn't Yet Warrant Resumption of QE
European Central Bank policy maker Klaas Knot said the euro-area economy isn’t weak enough to warrant the resumption of bond purchases and such a step shouldn’t be taken unless the slowdown worsens. While the Dutch central-bank governor said he’s open to an interest-rate cut, his remarks echo those by his German colleague Jens Weidmann and suggest President Mario Draghi will have a fight on his hands if he’s planning a strong package of monetary stimulus at the ECB’s Sept. 12 meeting. Investors have stepped up predictions that he’ll deliver lower rates and resume quantitative easing. “If deflation risks ... (full story)