Lagarde Confirms the ECB Will Buy All Bonds They Want, Despite German Court Decision

Posted Monday, June 29, 2020 by
Skerdian Meta • 1 min read

The European Central Bank (ECB) started the PEPP programme in March, to help the European economies as all sectors were diving hard due to the lock-down. Initially, the plan was for EUR750 million, but then it was increased to EUR1.3 billion.

But, as always, Germans didn’t agree with the monetary stimulus package and thy took it to the court. I don’t think that Germans will win the case, but Lagarde is reassuring traders that the programme will continue for as long as it is necessary. below are her comments:

ECB President Christine Lagarde Speaking:

  • Confident German court matter can be addressed
  • ECB granted Bundesbank request to disclose documents
  • ECB review will further analyse policy instruments
  • ECB constantly evaluates policy for proportionality
  • PEPP essential to avoid increase in deflation risk
The mental gymnastics that central bankers will perform to avoid admitting monetary financing is truly a marvel. Once in a while, they actually admit what’s really going on. EUR/USD was little moved on these comments, but markets already know that the ECB has no other way but to continue with the PEPP programme until the economy recovers.


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