ECB releases the accounts of its June monetary policy meeting
- It was reiterated that preserving favourable financial conditions over the period of the pandemic remained essentials
- Members expressed broad agreement with Lane's proposal to reconfirm the 'very accommodative' monetary policy stance
- It seemed appropriate that the improved outlook should be reflected in the governing council's policy stance
- Financing conditions were assessed as being too fragile to allow for a meaningful reduction in the pace of PEPP purchases
- Concerns expressed that any change in net purchases not based on improvement in inflation outlook would lead to unwarranted tightening of financial conditions
- But it was also argued that, to provide same degree of accommodation, asset purchases should be scaled back somewhat
- Full accounts
In essence, there seems to be some conflicting voices within the ECB about scaling back on PEPP but not enough to warrant any flipping of the tables per se. But I mean it is the ECB after all, and the unanimity and cohesion behind the strategy review also didn't last a day so what else can you expect when it comes to this matter specifically.
As mentioned before, September is the key meeting date to watch as that is when they might introduce some changes to the existing PEPP purchases.