ECB chief economist Philip Lane told Spanish newspaper Expansión in an interview, “at this stage, an excessive tightening in yields would be inconsistent with fighting the pandemic shock to the inflation path. That’s what we said, and that’s what we will be continuing to keep an eye on day by day.
However, “at the same time, it is crystal clear that we are not engaged in yield curve control, in the sense that we want to keep a particular yield constant,” he added. “With the purchase programme we are trying to move the curve in a certain direction and with enough force to support inflation dynamics”.
