European Central Bank Governing Council member Gediminas Simkus said officials should begin discussing whether to make changes to their pandemic bond-buying program.
(Bloomberg) — European Central Bank Governing Council member Gediminas Simkus said officials should begin discussing whether to make changes to their pandemic bond-buying program.
“We need to start talking about the program sooner rather than later,” the Lithuanian central bank head said Tuesday. “We have an environment that’s changed completely from the point when the decision was made” to end reinvestments at the end of 2024.
“Any decision on PEPP must be carefully assessed before it’s taken,” Simkus told reporters in Vilnius. “But this doesn’t mean we can’t start talking about this now.”
Simkus also said:
- “From the information that’s available now, we’re on track with this monetary policy to see inflation returning to levels of 2% by the end of 2025”
- On market bets on rate cuts in 2024, “I wouldn’t rush with an answer about next summer — we’ll see.”
- Read more: Lagarde Says ECB Rates to Stay Restrictive as Long as Needed
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