ECB Governing Council member Francois Villeroy de Galhau said, “our monetary policy should remain accommodative for the years to come, but our combination of instruments could evolve.”
“We could also have net asset purchases with our other program, APP, possibly somewhat adapted, and we would have the full range of what I call the quartet of our instruments.” The tools include the APP, negative interest rates, liquidity measures such as TLTROs, and forward guidance.
The combinations could facilitate a “possible exit of the PEPP by March 2022. Though, he emphasized, “we’re not yet there. We have time to judge.”