Market comment

Is the PEPP big enough?


The consensus is that no substantial change is likely at either today’s Federal Reserve or tomorrow’s ECB policy meetings. The key issue for Jay Powell is whether the Fed may loosen access to its lending facilities further and why it has scaled back asset purchases. Christine Lagarde will likely face questions on whether the pandemic emergency purchase programme (PEPP) is sufficient to contain funding costs and how it relates to EU leaders’ negotiations on whether Commission funds can give grants or loans to COVID-19 stricken countries.

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Apr 29 2020, 09:10 IST/BST