ECB in ‘pause mode’ in the near-term – UOB

Economist at UOB Group Lee Sue Ann assessed the latest ECB event.

Key Quotes

“The interest rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility were left unchanged at 0.00%, 0.25% and -0.50%, respectively.”

“The ECB will continue its purchases under the pandemic emergency purchase programme (PEPP) with a total envelope of EUR1.350tn.”

“Net purchases under the asset purchase programme (APP) will continue at a monthly pace of EUR20bn, together with the purchases under the additional EUR120bn temporary envelope until the end of the year.”

“The ECB will also continue to provide ample liquidity through its refinancing operations. In particular, the latest operation in the third series of targeted longer-term refinancing operations (TLTRO III) has registered a very high take-up of funds, supporting bank lending to firms and households.”