5/19/2020, 4:43 PM (Source: TeleTrader)
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We are fully prepared to increase PEPP size - ECB's Lane

European Central Bank (ECB) Chief Economist Philip Lane (pictured) said on Tuesday that the decision that ECB has taken since March contributes to further easing of ten-year rates by lowering the term premium by more than 10 basis points. He also added ECB is "fully prepared" to increase the size of the pandemic bond-buying program (PEPP).

He noted it is necessary to ensure that the monetary stance provides "sufficient accommodation and guards against the escalation of tail risks."

Lane also added that in all scenarios, a deep recession is envisaged. "In the severe scenario, real GDP would fall by 12% in 2020."

Breaking the News / TF