- Today the ECB launched further credit support and liquidity measures by creating pandemic
emergency longer-term refinancing operations (PELTROs) without a specific lending target at
a fixed rate of -0.25 %. It also eased the TLTRO III conditions further to up to -1.0%.
- President Lagarde emphasized the high uncertainty surrounding the current outlook. That
said, the ECB expects a gradual recovery as the containment measures are lifted.
- The inclusion of Fallen Angels bonds in asset purchases was not discussed in the Governing
Council but speculations about this were kept alive in the Q&A session.
- Looking ahead, we see a high chance that the ECB will again act in June and extend its
Pandemic Emergency Purchase Program (PEPP) beyond 2020.