ECB WATCH | A steady-handed ECB looks moderately optimistic

Today’s policy meeting saw the ECB leave its rates unchanged while maintaining the current pace of PEPP purchases, but delivered a moderately positive assessment of the evolving economic situation. This despite an acknowledgement of the underlying uncertainties posed by the pandemic

Key points

• Key points:
• The ECB renews pledge to keep PEPP purchases at ”a significantly higher pace” for next quarter than in Q1
• Sees risks as now being ‘broadly balanced’, instead of ‘tilted to the downside’
• Sees a more optimistic macro outlook while inflation projections have been revised slightly upwards

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