ECB continues to reiterate stands ready to adjust all of its instruments
- Full statement
- Prior statement
- Interest rates to remain at present or lower until it has seen inflation outlook robustly converge to a level sufficiently close to but below 2% within its protection horizons (repeat)
- No change to rate tiering multiplier
- Will continue purchases under PEPP with a total envelope of 1,350B euros
- Will continue to fully invest maturing securities at least through end-2022
- PEPP will run at least through end of June 2021
- The ECB cites ‘very high takeup’ of TLTRO-III
- In its June forecast the ECB saw GDP down 8.7% in 2020 and up 5.2% in 2021
There are no changes here whatsoever. The euro chopped around 1.1400 on the release but has ticked up to 1.1410 since.