ECB chief economist, Philip Lane, comments in an interview
- We are ready to do everything to restart the economy
- ECB acted to counter substantial negative inflation shock
- PEPP is a temporary tool
- Inflation is still far from our target, QE will still be needed
- ECB stands ready to adjust all tools - including rates - if needed
- But PEPP is the main focus currently
Nothing that really stands out too much as these are similar remarks to what have been reiterated by ECB policymakers over the past few weeks as well.
Despite all their talk of PEPP being 'temporary', it is going to be interesting to see if they can handle the tantrum/fallout when they start to look to remove it in the future.
For now, the programme is extended to June next year but it would surprise nobody to see if go all the way through to 2022 at the very least in my view.
