ECB: leaving space in its envelope
- The ECB announced no policy changes while declaring that it need not use all the space in its €1,850bn envelope for the PEPP. That merely recognises the reality that follows its current purchase pace and programme end date, but it’s a hawkish point to make.- Reduced emphasis on the euro also arguably reflects a less-dovish reality of reduced disinflationary pressure from this source. Specifically, the introductory statement dropped “very closely” from this part, while the press release dropped it entirely.
- With government prohibitions on activity continuing to prevent supply, fiscal authorities remain best placed to respond to the ongoing depression, rather than the ECB. A tapered pace of purchases over a longer period is likely, in our view.
Heteronomics provides UK-centric macro research. A hallmark attention to detail delivers a depth of analysis beyond what the sell side now delivers. Clients can also experience events that privately provide insights on these topics. Have a bespoke request for research or an event? Let us know. Clients can expect assistance with their own requirements to the extent it doesn't impinge upon other clients. Think of it as retaining an expert economist, without the large overhead.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.