In the accounts of June 3-4 ECB monetary policy meeting it’s noted there was “broad agreement” among Governing Council member to reiterate that the central bank “continued to stand ready to adjust all of its instruments, as appropriate”. This include further adjusting the size and composition of the PEPP, as well as the full range of instruments including the TLTROs, policy interest rates and forward guidance.
Governing Council members underlined that the sharp of economy recovery would “depend crucially on how consumption and investment evolved under the present uncertainties.” That also depends on whether the coronavirus pandemic leads to “longer-lasting changes in the behaviour of economic agents”.
In particular, he expected pattern of the “saving ratio” was seen as a “key issue”. Some concerns was expressed that “expecting a full unwinding of higher savings might be too optimistic, as protracted uncertainty might keep the ratio higher for longer”.
