“It is the latest pandemic wave and the omicron variant has led some countries to reintroduce stricter restrictions, energy prices have risen significantly and in some industries, there is a shortage of materials, equipment and labor”, this scenario forced to rethink goals for next year.
“The pandemic has shown that, under stress conditions, flexibility in design and conducting asset purchases has helped counteract the poor transmission of monetary policy and made efforts to achieve the Governing Council’s goal more effective. Within our mandate, under conditions of tension, flexibility will continue to be an element of monetary policy as long as threats to the transmission of monetary policy endanger the achievement of price stability, ”the statement also reads.
Furthermore, the President of the ECB stated that “the Governing Council also intends to continue to reinvest, in full, the principal payments of the maturing securities acquired under the APP for an extended period of time after the date when key ECB interest rates start to rise and, in any event, for as long as necessary. necessary to maintain favorable liquidity conditions and a wide degree of monetary accommodation ”.
Source From: Ambito
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