9/20, 1:01 PM (Source: TeleTrader)
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ECB asset purchases remain crucial in future - Schnabel

European Central Bank's (ECB) Executive Board member Isabel Schnabel stated on Monday that asset purchases, both under the Pandemic emergency purchase program (PEPP) and the Asset purchase program (APP), remain crucial in the post-pandemic future.

Schnabel said that asset purchases will also help the central bank reach its inflation target and that the stock of asset purchases provides a "significant long-term policy stimulus." She also noted that forward guidance cannot fully substitute asset purchases.

Lastly, Schnabel commented on a potential rate hike, saying that the time when economic circumstances call for it is getting closer. Moreover, when that time comes she assured it would be done through "proper sequencing" and "careful timing."

Breaking the News / OL