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Lagarde Confirms No Discussions on PEPP Took Place

ECB
Q: The Riksbank has warned it will need SEK80bn from the government to repair its balance sheet. Do you expect any eurozone central banks to require capital injections? What is your view on bringing forward the end of PEPP reinvestments? Would this be a risky move.
  • A: I will not go into the specifics of each national central bank because they are all in a different situation. There is no one size fits all. As the ECB we have one mission which is price stability. We do not have as a purpose to show profits or cover losses. It would be wrong if our decisions were guided by our PnL.
  • We have not discussed PEPP at this meeting.

Q: Do you think ECB forecasts might be a bit too optimistic given the Middle East developments and transmission of previous tightening?

  • A: Growth has weakened, with PMIs indicating growth that is not vigorous.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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