“The flexibility of the Pandemic Emergency Purchase Program (PEPP) should not undermine the safeguards and limits set by the European Central Bank (ECB), ECB executive board member Yves Mersch said on Monday, according to Reuters.
PEPP purchases are independent and cannot be consolidated with purchases from the APP, the other purchasing program, Mersch added. He indicated that the flexibility built into the PEPP cannot be unlimited.
“Unless we conclude that banks’ capital projections remain clouded by exceptionally high uncertainty, we should re-evaluate the planned bank-by-bank dividend distribution,” the official said.
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Credits: Forex Street
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