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  • ECB's Governing Council member de Cos: PEPP should be adjusted to counter rise in interest rates if that increase is not accompanied by return of medium-term inflation - Reuters
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23.04.2021, 10:57

ECB's Governing Council member de Cos: PEPP should be adjusted to counter rise in interest rates if that increase is not accompanied by return of medium-term inflation - Reuters

  • As long as our medium-term inflation projections do not show clear improvement, we should accommodate increases in market-based long-term inflation expectations measures 
  • A point target of exactly 2% would be "a good choice" regarding ECB's new inflation aim in the upcoming strategy review
  • It may be “necessary” to allow national fiscal authorities scope for growth-enhancing fiscal policies within credible post-pandemic fiscal consolidation plans


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