ECB’s Lane: PEPP increase is proportionate response to the outlook
|The European Central Bank (ECB) Chief Economist Philip Lane is out on the wires now, via Reuters, justifying the central bank’s decision on the pandemic emergency purchase programme (PEPP) expansion.
Additional comments
“ECB stands ready to adjust all of its instruments as appropriate.”
“Market fragility underlines continued need for central bank to be flexible.”
“And also exercise a market stabilisation function to the extent as necessary.”
So far this Friday, we had a few responses from the ECB policymakers on the QE expansion, with Robert Holzmann reaffirming that the PEPP has been efficient in reducing distortions.
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- ECB policymakers debated PEPP expansion of €500-€750 billion – Reuters
Market reaction
EUR/USD is off the multi-month tops of 1.1384, now trading flat at 1.1335 amid a broad-based US dollar comeback. Markets appear to reposition the dollar trades ahead of the key US NFP data.
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