ECB's Weidmann: Net PEPP purchases could be reduced step by step in advance

Jens Weidmann, European Central Bank (ECB) Governing Council member and Bundesbank President, said on Monday that he'd like to discuss the conditions under which the emergency situation ends from a policy point of view, as reported by Reuters.

Additional takeaways

"Preconditions for ending net PEPP are that all major restrictions are lifted, recovery is solid."

"Immediate corona-related measures should then be reduced in both fiscal and monetary policy."

"We cannot determine the exit from the monetary policy crisis mode far in advance."

"Net PEPP purchases could be reduced step by step in advance. This will then show whether the envelope is used up."

"Coming year would not be a crisis year if assumptions about pandemic are confirmed."

"PEPP must be ended when the emergency is over, that was important to me when the scheme was introduced."

"Financing conditions are still cheap."

Market reaction

These remarks don't seem to be helping the shared currency gather strength against its rivals. As of writing, the EUR/USD pair was down 0.2% on the day at 1.1910.