Q: There are doubts about whether or not the....>

ECB: Q: There are doubts about whether or not the ECB will use the full envelope

of the pandemic emergency purchase programme (PEPP), which now stands at EUR1.35

trillion.

A: The PEPP envelope was calibrated to meet two objectives: to counter the risks

to the medium-term inflation outlook due to the pandemic, and to prevent market

fragmentation and ensure the transmission of our policy to the entire euro area.

As long as we remain in the baseline scenario of our projections, it's likely

that the envelope will be used in full. Of course, upside or downside surprises

are both possible in a situation with so much uncertainty. The balance of risks

is currently still tilted to the downside in our view. It would be very good

news if we were to see such an improvement in the outlook that we could use less

of the envelope. That's not the case for the time being, so the size of the

current envelope remains appropriate.