ECB Governing Council member Olli Rehn said while growth in Eurozone is robust, supported is still needed. The outlook is clouded by bottlenecks as well as coronavirus variants.
The central bank is expected to debate in December on timing and the way to wind down the PEPP purchases. Rehn said he’s confident to find a ” viable and meaningful way of ensuring favorable financing conditions when we start our very gradual transition from the crisis measures to the next normal.”
He also urged governments to prepare for the eventual rise in borrowing cost even though a rate hike is “not yet within sight”. “It will nevertheless one day take place,” Rehn said. “This should be taken into account in budgetary planning in all the euro area countries.”