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9/21, 8:37 AM (Source: TeleTrader)
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Stournaras: ECB may need to recalibrate APP

Bank of Greece Governor Yannis Stournaras stated on Tuesday that the European Central Bank (ECB) will need to continue providing support even after the coronavirus pandemic has ended due to inflation still being expected to undershoot the 2% target.

"To avoid any cliff effect, the [Asset purchase programmes] would benefit from higher purchase volumes and from some important flexibility features of the [Pandemic emergency purchase programme]. Our experience with the PEPP has shown that by being flexible ... we've achieved significant results with regard to inflation and output at lower purchase volumes," the economist asserted.

Stournaras added even with accommodative monetary policy "in the years to come," inflation is seen coming in "significantly" lower than the central bank's 2% goal.

Breaking the News / MD