DAVOS, May 25 (Reuters) - The European Central Bank is unlikely to discuss any reduction in its oversized balance sheet this year as policy normalisation should focus on rate hikes, Dutch central bank chief Klaas Knot said on Wednesday.
"We’ve been saying that we won’t touch the balance sheet for the foreseeable future or at least well beyond lift off," Knot said in a World Economic Forum panel. "So I don’t expect any discussion on that at least for the remainder of this year and into next year." (Reporting by Balazs Koranyi; Editing by Toby Chopra)
