ECB Governing Council member Francois Villeroy de Galhau told BFM Business radio the aim of the Pandemic Emergency Purchase Programme (PEPP) was not “to invest a certain amount each month, but rather a result”. “We will do less if the financing conditions remain favorable like today. If the opposite is needed, we will do more,” he said.
ECB announced yesterday to raise the envelop of the PEPP by EUR 500B, and extend the program by 9 months through March 2022.
Villeroy also reiterated that “we do not have an exchange rate target … but we have a strong vigilance about the effects of the exchange rate on inflation. We are ready as a result of this vigilance to use all our instruments.”