NO ECB SUMMER SURPRISE THIS YEAR, GOVERNING COUNCIL WANTS AGREEMENT ON RECOVERY FUND
After having augmented the volume of the Pandemic Emergency Purchase Programme (PEPP) in June, the Governing Council did neither act nor announced outright action at today’s meeting.
- At today’s meeting the Governing Council decided not to act, in line with expectations.
- Changes in the tiering multiplier were not discussed and President Lagarde expects the PEPP to be fully implemented.
- The ECB sees the economy on the right path but emphasises the need for ongoing fiscal action and urged leaders to agree on the Recovery Fund.
- The ECB maintained its easing bias but unless downside risks materialize further bold ECB actions do not seem imminent.