Bundesbank President Jens Weidmann said today that the “coming year would not be a crisis year if assumptions about the pandemic are confirmed.” Also, “PEPP must be ended when the emergency is over”.
He explained that the “preconditions” for ending net PEPP purchases are that “all major restrictions are lifted”, and the recovery is “solid”. Immediate measures should then be reduced in both the fiscal and monetary front.
Net PEPP purchases could be reduced “step by step” in advance.
