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Published on Thursday, June 4, 2020 | Updated on Tuesday, June 9, 2020

ECB: Doubling down (almost)

Summary

The ECB packed quite a punch today as it boosted its COVID-19 response strategy with a larger than expected expansion of its QE purchases under the Pandemic Emergency Purchase Program (PEPP), by €600 bn, to a total of €1350 bn and extended the purchase horizon to at least the end of June 2021.

Key points

  • Key points:
  • The ECB stands ready to adjust all of its instruments
  • Significant downward revision of GDP and inflation projections
  • Sharp contraction seems to bottom-out, but not enough to avoid an unprecedented recession while risks are to the downside

Geographies

Documents and files

Report (PDF)

ECB-Watch_0620.pdf

English - June 4, 2020

Report (PDF)

ECB-Watch_0620_ESP.pdf

Spanish - June 4, 2020

Authors

SC
Sonsoles Castillo BBVA Research - Chief Economist for Financial and Economic Analysis
SD
Sumedh Deorukhkar BBVA Research - Senior Economist
AG
Agustín García BBVA Research - Lead Economist
MJ
Miguel Jiménez BBVA Research - Lead Economist
MM
María Martínez BBVA Research - Principal Economist
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