ECB’s Lane: PEPP increase is proportionate response to the outlook

The European Central Bank (ECB) Chief Economist Philip Lane is out on the wires now, via Reuters, justifying the central bank’s decision on the pandemic emergency purchase programme (PEPP) expansion.

Additional comments

“ECB stands ready to adjust all of its instruments as appropriate.”

“Market fragility underlines continued need for central bank to be flexible.”

“And also exercise a market stabilisation function to the extent as necessary.”