ECB Chief Economist Philip Lane said in a blog post that the decision to expand the PEPP is “the proportionate response to the substantial downward revision of the economic and inflation outlooks and the significant deterioration in financial conditions”.
He added, “the incoming economic and financial data and future projection rounds will provide essential guidance as to whether the pandemic-related negative shock to inflation dynamics has been sufficiently contained.” “Once the negative pandemic shock has been successfully managed, the primary focus of monetary policy can return to its underlying strategic goal of robustly achieving our inflation aim over the medium term.”
