- We still have high inflation pressures
- There are differing expectations within the ECB in terms of what can yet happen
- That is influenced to a point by how high inflation is in each country
- My suggestion on PEPP would be to reduce reinvestments step by step starting from March
At least he is trying to be honest in terms of identifying that there are various views within the ECB governing council itself. That being said, policymakers seem content enough to stick to being on the sidelines for now and that isn’t going to change until something changes on the inflation trend.
This article was written by Justin Low at www.forexlive.com. Source