ECB said the Governing Council in an ad hoc meeting today to “exchange views on the current market situation” and reiterated the pledged to “act against resurgent fragmentation risks”.
The council decided to “apply flexibility in reinvesting redemptions coming due in the PEPP portfolio, with a view to preserving the functioning of the monetary policy transmission mechanism”.
Also, it decided to “mandate the relevant Eurosystem Committees together with the ECB services to accelerate the completion of the design of a new anti-fragmentation instrument”.
