ECB's Lane: PEPP might not be used in full if conditions are right

If favorable financing conditions can be maintained, he concluded, the pandemic emergency purchase program (PEPP) "need not be used in full."
Lane added that the program can also be "recalibrated" in order to "counter the negative pandemic shock to the path of inflation." He also warned of challenges beyond the pandemic, stating that "the implications of low equilibrium real interest rates for fiscal policy and monetary policy is a first-order issue."