Further comments by ECB governing council member, Peter Kazimir
- A wait-and-see stance is the most reasonable approach now
Nothing new here as the ECB is more focused on the recovery path rather than the hit taken by the economy in Q2 as a result of lockdown measures and the virus fallout.
If anything, we can only perhaps expect the ECB to provide more clues on policy outlook in late Q3 and Q4 this year when there is a better sense of how the recovery is panning out.
The likely first step will be determining whether or not they see fit to fully utilise their PEPP envelope by the middle of next year. But for now, there's still a lot of time and room before we reach such a juncture in their policy decision-making.
