The push back by the ECB against the German court ruling continues

  • EU fiscal response to the crisis is inadequate
  • EU governments are not matching the ECB's efforts
  • Not opposed to increasing PEPP size, but decision should be based on data
  • No urgency to increase purchases, must examine how easing of lockdown measures are impacting the economy

Kazimir is covering all the key topics here as he reaffirms that the ECB will stick to their current mandate with regards to the German court ruling. Then, he goes on to bash the lack of coordinated fiscal response by governments - no surprise there.

Lastly, he makes mention to the PEPP issue but notably says that there is no "urgency" to make a decision just yet. Just be reminded that the program should run through to around September to October at its current pace, so they still have some time to decide.

But given the likelihood of the market growing more anxious in the coming months, I would expect them to be reaching some decision on the matter sooner rather than later.