US News

ECB should stick with plans to end pandemic purchases in March – Villeroy

© Reuters.

PARIS (Reuters) – A resurgence of COVID cases and a jump in inflation do not at this point warrant a change in ECB plans to wind down emergency bond purchases in March, ECB policymaker Francois Villeroy de Galhau said on Monday.

With the European Central Bank’s 1.85-trillion-euro Pandemic Emergency Purchase Programme (PEPP) due to expire in March, the ECB is due to decide in December on the its future and another one in place since 2015.

“I don’t think current developments change this assessment. From today’s perspective, we should end PEPP net purchases in March 2022,” Villeroy said in an interview with German newspaper Boersen Zeitung.

Since financial markets were largely anticipating its end in March, there was little reason to fear disruptive “cliff effects” when it does, he said.

While a jump in COVID cases in some euro zone countries is clouding the economic outlook, a surge in inflation this year has prompted warnings from ECB hawks to not keep monetary policy too loose too long.

Villeroy urged a “patient and vigilant” response at the ECB because the euro zone economy was not at risk of falling back into recession and because the inflation “hump” was temporary and caused by business bottlenecks.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

See also  Trump declines to say he will bring back Attorney General Barr if he wins: 'I'm not happy'

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.


Leave a Reply