ECB's Villeroy: Won't let adverse market dynamics lead to unwarranted hikes in borrowing costs

"Going further on Pandemic Emergency Purchase Programme (PEPP) only make sense if we ensure its maximum effectiveness," ECB Governing Council member François Villeroy de Galhau said on Monday.

"We won't let adverse market dynamics lead to unwarranted hikes in borrowing costs in some countries," Villeroy added in an online speech to France's Société d’économie politique. "Certain national central banks must be able to purchase significantly more, and others significantly less."

Market reaction

The EUR/USD pair showed no reaction to these comments and was last seen trading unchanged on the day near 1.0900.