ECB QE Monitor – June 2020

  • ECB strengthened its intention to make its action long-term:
    • The ECB revised its medium-term inflation target substantially on the downside. Core inflation is forecast to reach only 0.9% in 2022 (0.8% in 2020, 0.7% in 2021).
    • The ECB justified the adjustment of the size of the PEPP by the revision of its inflation outlook.The ECB increased the size of the PEPP by €600bn to 1,350bn and extended the program at least until the end of June 2021.
    • The Governing Council decided to reinvest maturing securities under the PEPP at least until the end of 2022. 

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