December 10, 2020

Bold ECB Action Sets A Highly Supportive Monetary Policy Stance Also In 2021

Share on facebook
Share on twitter
Share on linkedin
Share on email

In Short

At today’s meeting the Governing Council delivered a bold policy package that is broadly in line with expectations. Measures include the extension of the PEPP (up by € 500 bn to March 2022), more TLTROs at better conditions and the extension of other tools (collateral rules, PELTROs) adopted in spring.
Bold ECB Action Sets A Highly Supportive Monetary Policy Stance Also In 2021
Share on facebook
Share on twitter
Share on linkedin
Share on email

Highlights:

  • At today’s meeting the Governing Council delivered a bold policy package that is broadly in line with expectations.
    Measures include the extension of the PEPP (up by € 500 bn to March 2022), more TLTROs at better conditions and the extension of other tools (collateral rules, PELTROs) adopted in spring. 
  • Looking ahead, President Lagarde pointed out that further monetary policy action remains pandemic dependent and that the ECB expects herd immunity to be reached by year-end 2021. She also emphasized the ECB’s ability to act again if needed.
  • While no further ECB action seems imminent as of now, today’s action extends the highly supportive monetary policy environment throughout 2021. 
  • We view today’s announcements as a positive for credit markets as the ECB again made clear that it will not tolerate fragmentation across countries or sectors.

Download the full publication below

BOLD ECB ACTION SETS A HIGHLY SUPPORTIVE MONETARY POLICY STANCE ALSO IN 2021
December 11th, 2020

Also interesting

Traffic-highway-Business-district-Jakarta-Emerging
00:11:38
April 19, 2021
Fixed Income

The Spotlight ǀ Equity-like returns with bond-like volatility investing in 75+ emerging economies

China-flag-with-indicators-and-chart
April 16, 2021
Market Commentary

China’s Q1 GDP growth: Strong year-on-year growth amid weak momentum

size 3
April 15, 2021
Market Commentary

COVID-19 UPDATE Facts & Figures