Comments by ECB executive board member, Isabel Schnabel
- ECB measures form a powerful package
- Rating downgrades may be a risk to policy discussion
- ECB has not discussed impact of rating downgrades on purchases
Again, just be reminded that at its current pace of purchases, PEPP will run its course some time around October. The ECB has vowed that the program will continue until at least the end of the year, so they will have to adjust the size accordingly.
As for Schnabel's remarks, the last line is a bit interesting because the ECB did already take some steps to mitigate the impact of rating downgrades on collateral availability.
