ECB Executive Board member Fabio Panetta said “we can guarantee our commitment to support the recovery. For monetary policy, this means providing certainty about financing conditions well into the future. The PEPP envelope can be further expanded and extended, if warranted.”
“We stand ready to adjust all our instruments if downside risks to the outlook materialise, including those stemming from exchange rate dynamics,” he added. “An appreciation of the euro could significantly affect euro area inflation. There should be no doubt here: the ECB will not accept inflation settling at levels that are inconsistent with its aim.”
