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4/22, 3:02 PM (Source: TeleTrader)
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Lagarde: Did not discuss phasing out PEPP

European Central Bank President Christine Lagarde said on Thursday that the phasing out of the pandemic emergency purchase program (PEPP) was not discussed at the central bank's latest policy meeting "simply because it is too premature."

Speaking after the central bank decided to keep its monetary policy unchanged, Lagarde explained that "our assessment of the economic situation is broadly the same as in March" when the pandemic struck Europe and the ECB initiated PEPP. Despite acknowledging "clear signs" of improvement due to ongoing COVID-19 vaccination efforts, Lagarde maintained that new variants of the virus and lockdowns still pose a risk to the near-term outlook.

"There has been a clear and significant increase in the pace of purchases, and it will continue," she highlighted, adding that the future pace of PEPP purchases would be determined by data indicating financing conditions and the inflation outlook.

Breaking the News / JC