Lagarde: No doubt PEPP has been effective
European Central Bank (ECB) President Christine Lagarde said on Monday that there is “no doubt” the bank’s pandemic emergency purchase programme (PEPP) has been effective.
Lagarde stressed that PEPP helped maintain satisfactory financing conditions in both the public and private sectors and also improved the inflation outlook.
The ECB head added that the bank “will not refrain” from using any tools in its toolbox and even invent new ones if needed to ensure it can deliver on its mandate of price stability. She noted that the ECB still sees interest rates as its “primary tool” but it is “not sufficient” and noted others, such as purchase programs of all sorts, as well as forward guidance and targeted longer-term refinancing operations (TLTROs), are needed as well.
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