The ECB will not make any major policy changes at next week’s Governing Council meeting, but President Lagarde will emphasise that policymakers expect to use the current €1.35trn PEPP envelope in full. The fall in inflation in August, as well as evidence that the recovery is slowing or has stalled, and the continued spread of the virus are sufficient justification for the ECB to stick to its dovish script.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.