ECB goes full in

The ECB surpassed market expectations at today’s policy meeting , raising the size of its PEPP program by €600 billion to €1350 billion . Moreover, purchases under the PEPP will be re-invested at least until the end of 2022. A sharp downward revision of the inflation outlook and the ECB’s desire to get back to the pre-Covid19 inflation path made the increase, according to President Lagarde, necessary. With respect to the ruling of the German constitutional court Mrs Lagarde was confident that a “good solution” could be eventually found.