Remarks by ECB board member, Fabio Panetta, in an interview
- The risk of providing too little stimulus is high
- It is premature to withdraw stimulus measures
- The conditions today do not justify reducing pace of PEPP purchases
- A discussion about phasing out PEPP is clearly premature
- We are now seeing an undesirable increase in yields
Those are some heavy words by Panetta. It seems like there has been a bit of a change in attitude by the ECB as of late.
They were quite comfortable to talk about tapering a few weeks ago but now it is all about saying that they aren't comfortable with reducing the pace of PEPP purchases. Even Panetta's remark on yields strikes a contrast to what we heard last week here.
