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- ECB's Governing Council member Kazimir: We won't automatically boost APP when PEPP ends
ECB's Governing Council member Kazimir: We won't automatically boost APP when PEPP ends
- Concerns about the cliff effect of ending PEPP cannot automatically mean demands for increasing APP
- There is no automatic formula; we’ll be deciding according to conditions at the given time
- PEPP has been functioning very well and naturally it is now in final stage of its life cycle; it’s a special tool designed for special situation, and it will be phased out when it’s not needed anymore
- The market seems to understand that this tool will be terminated with end of the pandemic
- If inflation remains elevated next year because of supply bottlenecks, my concern is that it could spill into wage negotiations for following year as well, but we are not seeing this happening in key countries so far
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