Remarks by ECB president, Christine Lagarde
- Risks surrounding euro area growth outlook have become more balanced
- Downside risks remain in the near-term
- There is no room for complacency
- ECB to continue monitoring developments in the euro exchange rate
- PEPP will be implemented flexibly according to market conditions
- Step-up in the run-rate of PEPP will become visible when ascertained over longer time intervals (short-term disrupted by noise, such as lumpy redemptions)
- If favourable financing conditions can be maintained, don't need to use full PEPP envelope if it is not exhausted
Not much of anything new here by Lagarde but her remarks on the pace of PEPP buying will keep the market interested in scrutinising every release over the next few months, to see if the central bank sticks to their "promise".
She is due to speak again at 1100 GMT but that will be for an event in relation to women's rights at the French National Assembly. As such, there should not be any further policy remarks to follow given the backdrop.
