“All the members of the Governing Council of the ECB agreed that persistently favorable financing conditions, together with a certain improvement in the medium-term outlook, justified the reduction in (asset) purchases. under the PEPP program “. This is what we read in the minutes relating to the last meeting of the Governing Council of the ECB on 9 September: the one in which, while not uttering the word tapering, the central bank announced that it would begin to reduce purchases of government bonds that happen with the PEPP, pandemic QE.
In the minutes released today we read that ECB officials recognized “a significant improvement in the assessment of the inflation outlook over the course of the year”.
However, as reiterated several times by the same number one Christine Lagarde, “the increase in inflation in the short term is mainly due to temporary factors that will subside in the medium term” and, for this reason, “no monetary tightening is necessary” .
The ECB also reiterated that, even without the PEPP, the approach of its monetary policy, on the whole, “remains very accommodating”.