FRANKFURT (Reuters) – European Central Bank policymaker Jens Weidmann on Monday backed winding down the ECB’s emergency bond purchases in steps before ending them altogether when pandemic-fighting curbs are lifted and the recovery solidly underway.
Among the first ECB policymakers to openly discuss the end of the Pandemic Emergency Purchase Programme (PEPP), Weidmann said the scheme should end when “all noteworthy measures to contain the pandemic” have been dropped and that “the economic recovery (is) solid”.
“Due to the still existing uncertainty, we cannot determine the exit from the monetary policy crisis mode far in advance,” Weidmann added. “In order not to have to end the PEPP suddenly, however, the net purchases could be reduced step by step in advance.”
(Reporting By Francesco Canepa)
