- ECB is focused on rates for now
The headline is in line with what Lane is also out saying now, that he does not expect a discussion about balance sheet reduction this year. It also ties to the narrative put out by Panetta earlier that the "natural way forward" is for the ECB to hike rates while keeping the stock of assets purchased under the APP and PEPP constant.
For some context, the ECB balance sheet has hit a fresh all-time high (h/t @ Schuldensuehner):
