European Central Bank (ECB) policymaker Francois Villeroy de Galhau said on Monday, that the central bank plans to maintain the Pandemic Emergency Purchase Program (PEPP) until at least March 2022.
He added that there was no pressure to decide on the future of PEPP ahead of the ECB policy meeting in September because unlike the US Federal Reserve (Fed), the ECB could adjust its monthly purchases according to funding conditions.
Speaking on BAM Business radio, Villeroy said that financing conditions in the eurozone have improved since the last meeting of the ECB in June.
“Our discussions should take into account the improvement in this funding situation,” Villeroy said.
He also said the central bank expected a temporary surge in inflation to take place amid a strong economic recovery and a shortage of supply of goods caused by the Covid-19 outbreak.
He who is also the Governor of the French central bank also predicted the economy in France and the European Zone will return to pre -pandemic levels in early 2022 or maybe earlier, and there is no much higher inflation risk at this level.
The euro, however, did not react to his statement, continuing to trade steady against the US dollar after making big gains last week following the Fed's dovish statement.
