ECB's Schnabel: As inflation outlook brightens, when asset purchases end is more important

Remarks by ECB executive board member, Isabel Schnabel

• Less important is how much central bank buys or when reduction of purchases begin
• ECB asset purchases will remain crucial in the time to come
• Paves the way out of the pandemic and towards reaching inflation target
• Stock of asset purchases provides substantial, persistent policy stimulus
• But there may be a point where positive effects of QE could even reverse
• Forward guidance cannot fully substitute asset purchases

The headline remark is less interesting than it suggests as even with the end of PEPP purchases, the ECB is not going to put a stop to APP any time soon.

As such, a lot of her remarks here are purely conjecture, in case anyone needs reminding.