Comments by ECB governing council member, Peter Kazimir

  • We are not obliged to use whole PEPP envelope
  • It seems to me we are in line with baseline scenario

This just reinforces the notion that the ECB continues to adopt a more wait-and-see approach and will likely stay that way unless there is a hiccup in the economic recovery or that the recovery is more robust than initially anticipated.

The latter seems unlikely so one can expect the ECB to stay on the sidelines until Q4 2020 at the very least before considering any potential policy tweaks.