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Lagarde downplays significance of change to PEPP envelope language

ECB
  • Q: Can you specify why you included the sentence on the PEPP envelope? Is the GC concerned about fragmentation in the banking sector in light of non-performing loans?
  • A: Notes that the term 'equally' is used when talking about the possibility of the PEPP envelope not being used in full and the potential for it to be recalibrated if required to maintain favourable financing conditions. The ECB's mandate is price stability. The term 'fragmentation' relates to monetary policy transmission.

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