ECB’s Wunsch: ECB should phase out PEPP next March

Based on the current economic projections, the European Central Bank (ECB) should phase out the Pandemic Emergency Purchase Program (PEPP) next March, ECB policymaker Pierre Wunsch told Reuters on Friday.

“If you want to be responsibly consistent, then based on our growth forecasts you end in March,” Wunsch said. “But at the same time, we want to avoid cliff effects and the majority feel that we need to be flexible in the transition.”

Market reaction

The EUR/USD pair showed no immediate reaction to these remarks and was last seen trading flat on the day at 1.1767.