Vice President Luis de Guindos said yesterday that “substantial monetary support” is needed for the economy “for some time to come. He added, “even if recovery is successful, there is still a lot of uncertainty.” Pace of inflation will “slow down again” next year as a number of one-off factors wane, such as the temporary VAT cut in Germany last year.
He also said that when to end the PEPP is a “medical question first and foremost”. He added, “it depends on whether the vaccination campaigns are successful in combating the Delta variant and whether new, more resistant variants appear.”
