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Lagarde Says ECB May Not Use All of New Emergency Bond Purchases

Bloomberg business news
ECB's Lagarde Says Pandemic Still Poses Serious Economic Risks

President Christine Lagarde said the the scale of additional emergency bond purchases will depend on the economic situation and the bank may not use all of the expanded program.

“If favorable financing conditions can be maintained with purchase flows that do not exhaust the envelope over the net purchase horizon of the PEPP, the envelope need not be used in full,” Lagarde said Thursday. “Equally, the envelope can be recalibrated if required to maintain favorable financing conditions to help counter the negative pandemic shock to the path of inflation.”