Remarks by ECB policymaker, Madis Muller
- PEPP purchases can end next spring
- ECB needs to watch inflation carefully
- If inflation shoots much higher, ECB would not be able to continue policy of large bond purchases and negative rates for long
Well, at least he's acknowledging the risks associated and highlighting that the ECB does have tools to deal with the situation. But the tagline for the central bank remains that inflation pressures are transitory, so take Muller's remarks lightly if anything.
In any case, they will surely be increasing APP purchases when PEPP ends next year so that's not exactly fitting with "reduction of stimulus" per se.
