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Wunsch says central bank could extend PEPP if economy clearly deteriorates

European Central Bank (ECB) lawmaker Pierre Wunsch said Tuesday that he was surprised by the resilience of the eurozone economies, as reported by Reuters.

Additional comments:

Household savings in 2020 and the beginning of 2021 are enough to finance private consumption growth above the 2019 level for 3-5 years. “

“The ECB is OK with financing conditions as they are“.

“The ECB can only keep financing conditions stable for a few months or a year.”

“If the economy improves strongly, it will have to mean some adjustment at some point.”

If the economy clearly deteriorates, the ECB could extend the PEPP beyond March 2022“.

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