ECB's Villeroy: Could possibly look to end PEPP purchases in March next year

Dhwani Mehta FXStreet

The European Central Bank (ECB) Governing Council member and Bank of France Head Francois Villeroy de Galhau commented on a likely exit from the coronavirus pandemic-led monetary policy stimulus.

Key quotes

2% inflation is a target, not the ceiling.

PEPP will run at least until March 2022.

The ECB policy should remain accommodative in the coming years.

The ECB could possibly look to end PEPP purchases in March next year.

The end of PEPP does not mean end of accommodative policy.

Market reaction

EUR/USD consolidates the upside around 1.1960, with the bulls turning cautious amid concerns over the covid vaccine, especially after a pause in the J&J’s vaccine distribution.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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