UPDATES - ECB policymakers open to 12-month PEPP extension - report
Bloomberg reports, citing officials familiar with the situation
The report says that ECB policymakers would likely agree to extend PEPP by a full year if that is proposed at the meeting next week.Adding that several members of the governing council would support such a proposal, even those who have a personal preference for a six-months extension.
That said, the sources also reveal that there might still be a possibility of dissent as there is concern that such extending the program to the middle of 2022 would reveal unwarranted assumptions about the post-pandemic economy.
There is also a suggestion that they could go with a 12-month extension with the option to reduce it again if the recovery proves stronger than expected.
I don't think this comes as much of a surprise already after ECB executive board member, Isabel Schnabel, brought it up earlier this week here. That said, a 12-month extension is a bit on the far end of expectations, to be honest.
However, doing a 6-month extension and then following it up with another 6-month kick down the road is also bad form since they are claiming this to be "temporary".
Either way, all this just means that the current set of easing tools will be well in place for quite some time to come. Party on.
Reprinted from Forexlive，the copyright all reserved by the original author.
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