ECB Governor Council member Francois Villeroy de Galhau hinted that the central bank might boost the EUR 750B Pandemic Emergency Purchase Program ahead. “It is in the name of our mandate that we will very probably need to go even further”, he said in a conference in Pari. “It is its very flexibility that should make the pandemic emergency purchase program our preferred marginal instrument for dealing with the consequences of the crisis.”
With the program, bone purchases could target countries with sharper rises in treasury yields. “Depending on market dynamics and liquidity conditions – and where these exhibit unwarranted gaps or there are risks of excessive volatility – certain national central banks must be able to purchase significantly more, and others significantly less, while ensuring the risks remain unshared,” Villeroy said.
