ECB's Lane: PEPP might not be used in full if conditions are right
European Central Bank (ECB) Executive Board member Philip Lane said on Monday that the bank "routinely looks at a wide range of measures to gauge the state of financing conditions for all sectors of the economy."
NEWS IN ENGLISH 25.01.2021, 18:29
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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."
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