Global Macro Service > Research Briefings > Eurozone

ECB to keep watchful eye on recovery pace

The massive easing in financial conditions since March and the strong initial rebound in economic activity will encourage the ECB to hold off any major policy change at its upcoming meeting. Given the PEPP’s success in narrowing Italian yield spreads, a debate on the pace at which purchases converge to the capital key could emerge. But we expect the majority of the council to favour a flexible allocation to be able to respond to emerging pressure points.

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