Comments by ECB governing council member, Francois Villeroy de Galhau

  • PEPP is a 'masterpiece' of strong ECB reaction
  • ECB can be even more open in PEPP flexibility
  • Does not see a need to change rates at present
  • Economic recovery is underway, but will be gradual and slow
  • Unemployment will be a challenge for some time
  • Determined to deliver on mandate, regardless of German court ruling

Credit where credit is due, the PEPP response certainly did hit the right tone but it also needs to be said that the combination of actions by all major central banks (especially the Fed) also helped to alleviate general market pressures seen during mid-March.

As for the PEPP response itself, removing the issuer limits has certainly been key but the ECB will still have to address the size of the program in the coming months.

Let's see if they will deliver the news in their next meeting in June.