Comments by ECB executive board member, Fabio Panetta

  • European response to the coronavirus has been remarkable
  • We are now in a better position to watch how key developments play out
  • ECB will respond to any significant tightening in financial conditions
  • But any positive indications for now need to be taken with a pinch of salt

After their latest move to increase the PEPP stimulus target, ECB policymakers may not have much else to do for the time being as long as market conditions keep the way they are. But as with any path to progression, complacency is something to watch out for.