Market news
16.07.2020, 13:50

ECB's president Lagarde: We really felt we were in a good place at the moment on monetary policy

  • Says they have "slowed down a little bit" the pace of PEPP purchases because markets have been more stable
  • Highlights flexibility in PEPP
  • Says baseline is that they will use the full PEPP envelop but if there is "very significant upside" they might not
  • Experience with tiering has been positive
  • Tiering multiplier is working as intended
  • Both multiplier and remuneration rate can be changed
  • We don't see at the moment any reason to change tiering; haven't discussed it
  • Second coronavirus wave in U.S. is concern
  • ECB's baseline forecast takes potential second coronavirus wave into account
  • Our assumption is that the European recovery fund will "come about" with a mix of loans and grants
  • Bank lending trends are comforting
  • We'll never let the capital key convergence impair policy efficiency
  • Policy review to end in the second half of 2021

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