MNI BRIEF: PEPP and TLTRO Effective Pandemic Tools: ECB Lane

European Central Bank Chief Economist Philip Lane underlined Wednesday that the two main policy tools the Governing Council will look to recalibrate this month are the PEPP and TLTRO schemes, although he underlined that all options currently in the toolbox could be used. Echoing comments of fellow policymakers in recent days, Lane said the main concern for the recalibration was perhaps to keep at bay the risk of a reversal of accommodative financing conditions.

Speaking at an online event in London, Lane said it was too early to say what the recalibrated policy mix could be, although he said "what is true is that these two programmes (PEPP and TLTRO) have been very effective ways to respond to the pandemic," while accepting that other policy options are not ruled out.