ECB's de Cos: We can use full PEPP envelope or increase it if required

Comments by ECB policymaker, Pablo Hernandez de Cos

• Would not need full PEPP envelope if financial conditions persist
• Yield curve control is an option worth exploring

One of the less talked about issues as we start the new year is the divide among ECB policymakers at their last meeting in December.

The remarks by de Cos above reflect one side of that divide and will certainly run into some opposition from the other side as things continue to progress later on in the year.

For some added context:

• ECB leaves key rates unchanged, expands PEPP by €500 billion until March 2022
• ECB package came close to running aground at tense meeting yesterday - report
• ECB sources: Decision on PEPP extension was not unanimous, but almost