ECB's Mersch speech seems to be out early.......>

ECB: ECB's Mersch speech seems to be out early (was expected at 15:30BST).

"Monthly flows under the PEPP help to close the medium-term inflation gap

created by the pandemic. But in the long run, this flexibility should not

undermine the safeguards and limits we have set in our purchase programmes to

respect the constitutional red lines that monetary policy cannot cross and that

contain risks of monetary financing. On account of its flexibility, the PEPP

must remain a temporary crisis instrument."

- He goes on to discuss that pre-set monthly purchase amounts, purchases in line

with the capital key and issuer/issue limits are key safeguards which will be

needed when we are no longer in crisis mode.

- Not too much to move markets here.

- Full speech here:

https://www.ecb.europa.eu//press/key/date/2020/html/ecb.sp200625~5eee0165a7.en.h

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