ECB policymaker Francois Villeroy de Galhau said suggestions that the European Central Bank (ECB) could begin winding down exceptional bond purchases early are purely speculative.
Villeroy is also governor of the French central bank. He pushed back against recent comments by more hawkish members of the ECB who have suggested it could decide to slow bond purchases soon.
Even though the ECB has committed to maintain its Pandemic Emergency Purchase Programme (PEPP), those comments have come. Until March 2022, this is aiming to help economies deal with the COVID-19 crisis.
Villeroy said on France Info television that any suggestion of a reduction in their purchases before then, is sometimes called by the technical term tapering or phasing-out is purely speculative. He also added that, the ECB’s broader monetary policy would remain accommodative even if the ECB was to ease back on PEPP.
To keep borrowing costs low since the start of the pandemic crisis, around a trillion euros worth of debt has been bought by ECB.