Lagarde: We have €1T left in PEPP envelope
The European Central Bank (ECB) still has “probably” around €1 trillion left in the Pandemic Emergency Purchase Programme (PEPP) envelope, ECB President Christine Lagarde noted on Thursday.
Speaking at a presser following the central bank’s interest rate decision, she asserted that the ECB wants to remain flexible with purchases under the PEPP, adding that there is a possibility of keeping some funds unused if there is no need to put them in the economy. On the other hand, the bank stands ready to discuss an additional widening of the program in the future if needed, Lagarde underscored.
The ECB’s head said that the central bank is not trying to “micromanage the situation” or to “do yield curve control,” but to preserve favorable financial conditions in the Eurozone. The ECB Governing Council agreed that the best way to achieve that goal at the moment is to “significantly increase” purchases “as of today,” Lagarde explained.
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