ECB Preview: Biding Time Until June
(2 min read)
Stepped up PEPP purchases since the 11 March ECB meeting leave little need for any policy changes at this week’s governing council meeting. President Christine Lagarde is likely to reiterate that the ECB will assess the pace of purchases in June and that, for now, the stance of monetary policy remains appropriate.
The Step Up in PEPP Has Been Moderate So Far
Despite the announcement of a ‘significant’ increase in PEPP purchases for Q2 at the 11 March ECB meeting, weekly data show a fairly limited increase. Average weekly purchases are now running at €16.9bn YTD versus €13.9bn before the March meeting. Expectations were around the €20bn mark, although the Easter holiday has probably played a role in the lower purchases. And Lagarde and other governing council members have cautioned against overanalysing the weekly data with the commitment to increase purchases to run throughout Q2. Total PEPP purchases stand at €960.3bn versus the €1,850bn envelope, currently through March 2022.
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