Comments from the Governing Council member
- ECB ready to act
- ECB 'can and must react' to any undue tightening
- Options include deposit rate cut if needed
- Forward guidance could be strengthened to make tolerance for inflation overshoot explicit
- So much as recent yield rise is unwarranted, ECB must react against it
- First tool is actively using flexibility of PEPP purchases
He doesn't like those rising sovereign yields.
The PEPP data this week was soft but the ECB came out and talked against it, saying it was due to redemptions. Now Villeroy is talking about doing more. Italian yields are ticking lower on this and the euro is as well.
