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22 Apr, 2021 13:08 22 Apr, 2021 13:18

ECB stays put on policy, leaves door open to PEPP 'recalibration'

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European Central Bank policymakers stood pat on policy, reiterating their intention to up the ante on bond purchases and, apparently, while leaving all their options open.

While Thursday's decisions were expected, ECB watchers believed that there was a bit of a rift in the Governing Council between those who wanted to clearly signal that the Pandemic Emergency Purchase Programme (PEPP) would not be extended beyond March 2022 and those preferring an open-ended commitment.

In the end, the ECB chose not to tie its hands while stating again its intention to purchase assets under PEPP at a "significantly" higher pace during the second quarter than in the first months of 2021.

Also worth noting, market observers were keen for more details on just what exact pace of purchases the council had in mind.

Significantly as well, in its policy statement, the ECB did reiterate that PEPP was tied specifically to the "crisis phase" of the pandemic.

The ECB also reaffirmed its intention to continue making net purchases under its Asset Purchase Programme at a pace of €20bn per month and to keep providing liquidity through its targeted longer-term refinancing operations for lenders.

In parallel, the interest rate on its main refinancing operations, on the marginal lending facility and the deposit facility were kept a t 0.0%, 0.25% and -0.50%.


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Pilling and Co Stockbrokers Ltd. is not responsible for the content or accuracy of third party news articles and we may not share the views of the author or publisher.

We provide third party news for your convenience and information only and make no representation or endorsement whatsoever and hereby exclude all liability for any loss or damage that may be incurred by you as a result of your access or use. Please note that third party content may be subject to terms and conditions imposed by the third party owner of that content.