Europe | Monetary Policy & Inflation
Today’s increase in the size of the ECB’s pandemic emergency purchase programme (PEPP) adds another layer to Europe’s response to the COVID crisis. This comes on top of additional and significant fiscal stimulus in Germany and the earlier proposal for coordinated support via an EU Recovery Fund.
An above consensus EUR600bn increase in PEPP brings the total package to EUR1350bn with the programme now set to run until June 2021. Expectations on the extension of the PEPP timeframe were more varied and the stated rationale for June was to allow for greater visibility on the inflation outlook.
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