ECB’s de Cos: Will consider keeping bond-buying flexibility after pandemic
|The European Central Bank (ECB) Governing Council member and Spanish central bank chief Pablo Hernandez de Cos said that the central bank consider keeping some of the flexibility of its emergency bond-buying program when it transitions to other asset purchases after the Covid crisis.
Key quotes (from Bloomberg)
Uncertainty in euro area is still very high.
New guidance is first example of ECB resolve to act.
PEPP should last as long as pandemic impacts economy.
The main lesson to be drawn from the program is that the power to skew purchases toward parts of the economy that need it most has notably increased not only the effectiveness but also the efficiency.
EUR/USD stays positive
Following the news, EUR/USD remains on the front-foot, mildly bid above 1.1800. Though, the bulls are cautious ahead of the Fed.
Read: EUR/USD Price Analysis: Bulls knock the door ahead of Fed
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