The ECB says its PEPP will run at a faster pace
(Kitco News) - The ECB kept rates unchanged as expected and forward guidance has been slightly revised. The ECB is still looking for a 2% inflation target and the bank is committed to accommodative monetary policy. Purchases under the PEPP are expected to be at a higher pace.
The ECB leaves all policy settings unchanged, as expected but is to revise forward guidance to underline the commitment to a "persistently accommodative stance" to meet the inflation target. More to come from the press conference.
Today's ECB meeting was expected to come about with no changes to rates and QE (including PEPP). There were expectations for the central bank to change its forward guidance.
PEPP (pandemic stimulus) has an envelope of €1.85trl and will run to at least March 2022, though the envelope may not be needed to be used in full. APP (general QE) €20 bln asset purchases per month at the moment (not expected to change). Some had suggested the ECB could link the APP and PEPP to the inflation target.