ECB: More bang
An increase of the PEPP programme by 600bn euro and the reinvestment of the PEPP proceeds underlines the ECB's determination to do 'whatever it takes'. Today’s decision should dent any future speculation about whether or not the ECB is willing to play its role as the lender of last resort for the Eurozone
The ECB just added to the Eurozone policy fireworks of recent days, increasing the size of its pandemic emergency purchase programme (PEPP) by 600bn euro to a total of 1350bn euro. The purchases will last at least until the end of June 2021. Also, the ECB will reinvest the proceeds from the PEPP purchases until at least 2022.
After the announcement of the European Recovery Plan and last night’s powerful German fiscal stimulus package, the ECB has added to real stimulus fireworks.
Today’s decision should dent any future speculation about whether or not the ECB is willing to play its role of lender of last resort for the Eurozone. It is.
Let’s stay tuned for the press conference at 2.30pm CET.