ECB adds crucial tweak that could limit PEPP purchases
Hawkish governors secured wording that bond-buying allocation “need not be used in full”
The European Central Bank’s Governing Council added a tweak to its approach to bond purchases on December 10, which could prove crucial in 2021.
President Christine Lagarde’s introductory statement announced a €500 billion ($605.6 billion) increase to the Pandemic Emergency Purchase Programme (PEPP), taking the total to €1.85 trillion. Net purchases were also prolonged by nine months to March 2022. However, the ECB added a new sentence to the statement, indicating this increase may never be
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