ECB’s de Guindos: We may start to think about phasing out emergency stimulus if vaccinations help to speed up economic recovery

ECB vice president, Luis de Guindos, remarks to La Repubblica

Luis de Guindos
  • The normalisation of monetary policy should go hand in hand with the normalisation of the economy
  • If vaccinations speed up and 70% of Europe’s adult population is vaccinated by summer as economy gathers speed, can start to think about phasing out emergency mode on the monetary policy side of things

Despite pledging “significant” increases to PEPP purchases this quarter, the ECB has done more tapering talk rather than actually walking the walk when it comes to the former.

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But with yields in the euro area starting to be on the rise again, it will be interesting to see how they are going to be dealing with that dynamic in the months to follow.


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