ECB’s De Guindos: PEPP to transition to PSPP soon
The Vice President of the European Central Bank Luis de Guindos spoke at the Euro Finance Summit on Monday, stating that he expects the transition from the pandemic emergency purchase programme (PEPP) to the public sector purchase programme (PSPP) to take place “in the near future.”
Overall de Guindos described the economic outlook as brightening due to the swift progress of the vaccination campaign. Euro area real GDP is expected to return to its pre-crisis level by the first quarter of 2022.
“The outlook for inflation has also been revised up. Annual inflation has picked up, mostly on account of temporary factors, including a strong increase in energy prices: it is projected to average at 1.9% in 2021 and to peak at 2.6% in the fourth quarter of this year, before returning to 1.5% in 2022 and 1.4% in 2023,” de Guindos said.
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