ECB Executive Board member Yves Mersch said in a speech that the pandemic emergency purchase programme (PEPP) is the “most appropriate instrument compared with a recalibration of standard policy tools, such as interest rate cuts”. PEPP purchases are “separate from and cannot be consolidated with APP purchases”, making it a “distinct monetary policy measure”.
He also emphasized that “crisis measures must be temporary and targeted. They are justified only in the light of the exceptional circumstances seen during the pandemic. Extraordinary times require extraordinary action. As the crisis evolves and subsides, the ECB will reconsider its tools and supervisory practices.
