- ECB's president Lagarde: We really felt we were in a good place at the moment on monetary policy
Market news
16 July 2020
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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