Experts: ECB May Increase COVID-19 Anticrisis Program by €0.5T
At the upcoming meeting on Thursday, the Board of Governors of the European Central Bank (ECB) may increase the special program for the purchase of assets in the PEPP market by €500 billion, and its term – by six months, according to ING experts.
Pandemic emergency purchase program (PEPP) is a paper buying program announced on March 18 this year amid economic problems that began to appear due to the start of a large-scale fight against the coronavirus pandemic. The purchase limit for this program was then set at €750 billion, and its validity period was until the end of 2020.
“The focus of the ECB’s June meeting this Thursday will be on the expected increase in PEPP. We expect an additional €500 billion to be spent by mid-2021,” the ING survey said.
Such an increase in the volume of the program, in general, is an expected event, so its effect on the euro/dollar rate should be limited, the review notes.
The regulator, according to ING experts, will not change its rates at a future meeting. At a previous meeting in late April, the ECB kept the base interest rate at 0%, on deposits at minus 0.5%, and the marginal rate remained at 0.25%.
source: reuters.com, ec.europa.eu