ECB's Lane: Too early to discuss end of PEPP in September policy meeting

European Central Bank (ECB) chief economist Philip Lane argued on Wednesday that it was too early to discuss the end of the Pandemic Emergency Purchase Program (PEPP) in the September policy meeting, as reported by Reuters. "The discussion should take place in autumn," Lane added.

Additional takeaways

"Delta variant's impact on eurozone limited given high vaccination rate; Europe now the exception in pandemic."

"Any PEPP pace adjustment in September subordinated to commitment for favourable financing conditions."

"Markets don't need long notice for end of PEPP as QE will continue via APP."

"Committed to favourable financing conditions at least through March."

"Not seeing big wage rise so no change in his view that inflation rise this year is transient."

"Seeing growth in 2021 broadly in line with June projections, with growing headwinds offsetting better Q2."

Market reaction

The EUR/USD pair edged slightly lower after these comments and was last seen losing 0.15% on the day at 1.1735.