With the pandemic now receding, analysts, including the ECB's
own Survey of Monetary Analysts, expect the 1.85 trillion euro
Pandemic Emergency Purchase Scheme to end next March and see no
increase in volumes under the Asset Purchase Programme (APP) to
compensate for the lost stimulus.
"This is how the market sees this and I think the market gives
the right assessment," Holzmann, who sits on the ECB's rate
setting Governing Council said. "We don’t know yet but at the
moment it looks like the end is in March."
The exceptional stimulus must end when the pandemic is over but
ECB support via other schemes will continue, and Holzmann even
mentioned the option of modifying the Asset Purchase Programme.
"We still have other programmes there, the APP, which can
continue, changed or unchanged," Holzmann, one of the more
conservative ECB policymakers, told roundtable discussion
organised by UBS.
The pandemic is far from over, he added, so this timeline could
still change and the ECB will next conduct a deeper assessment
in September, when new staff projections are made.
(Reporting by Balazs Koranyi; Editing by Gareth Jones)
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