- Analytics
- News and Tools
- Market News
- ECB must keep money taps fully open as crisis not over - ECB policymaker Stournaras
ECB must keep money taps fully open as crisis not over - ECB policymaker Stournaras
Reuters reports that ECB policymaker Yannis Stournaras said that the European Central Bank must keep its money taps fully open, as the euro zone economy is still in the throes of the coronavirus pandemic despite progress in vaccination campaigns.
ECB rate-setters will review the pace of emergency bond purchases at their June 10 meeting against an improved economic backdrop. Growth and inoculation rates are rising in the bloc as COVID-19 cases fall.
However, Stournaras said the recovery remained fragile and, with no evidence to point to an era of high inflation in the foreseeable future, it was too early for the ECB to slow down emergency bond purchases.
With inflation forecast to stay below the ECB's 2% target for years to come, Stournaras supported continuing the ECB's 1.85 trillion euro Pandemic Emergency Purchase Programme (PEPP) at its current clip.
"I don't see any reason to make any change (to the pace of PEPP) at the moment," he said.
Stournaras said the time for giving up PEPP, which is set to run at least until March 2022, hadn't come yet.
"I don't think the time is right to do this shift yet," he said. "Of course, at some point in the future this will occur, there's no doubt about that. We have to think about a smooth transition from PEPP to APP."
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
