Lagarde Says ECB May Not Use All of New Emergency Bond Purchases
Bloomberg
Published Dec 10, 2020 08:44AM ET
Updated Dec 10, 2020 09:09AM ET
Lagarde Says ECB May Not Use All of New Emergency Bond Purchases
(Bloomberg) -- President Christine Lagarde said the the scale of additional emergency bond purchases will depend on the economic situation and the bank may not use all of the expanded program.
“If favorable financing conditions can be maintained with purchase flows that do not exhaust the envelope over the net purchase horizon of the PEPP, the envelope need not be used in full,” Lagarde said Thursday. “Equally, the envelope can be recalibrated if required to maintain favorable financing conditions to help counter the negative pandemic shock to the path of inflation.”
The comments came after the ECB said it will boost the emergency bond program by 500 billion euros ($605 billion) and lengthen it by nine months.
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