Comments by ECB policymaker, Robert Holzmann

  • PEPP purchases worked, helped to lower spreads
  • There are indications for sustainable recovery from the middle of 2021
  • Lower deposit rates wouldn't have effect
  • Sees asset bubble risk, no actual bubbles yet

Yeah, that is not going to happen. Holzmann's remarks may be his own but I'm sure most, if not all, governing council members would also not go with a rate cut next month.

Going back to other/new policy tools, PEPP and TLTROs are still the likeliest combo given ECB vice president de Guindos' remarks yesterday suggesting that they will be considering the latest vaccine developments as part of their forecasts/outlook.