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The European Central Bank (ECB) is seen extending the elevated pace of its Pandemic Emergency Purchase Programme (PEPP) at its next meeting, the latest Bloomberg survey of economists showed.

Key takeaways

“Expect the Governing Council to prolong current stimulus settings on June 10. Economists surveyed before the previous meeting said purchases would probably be scaled back next quarter.”

“The ECB will unveil new economic projections that should confirm a brighter outlook as vaccinations pick up. Surveys have shown optimism high, with companies raising output and price pressures mounting.

“One-factor policymakers will need to consider is  thinner summer liquidity. That may force it to slow buying temporarily — as has happened before with other programs — but it also complicates communication. Some economists reckon the ECB will opt for vaguer language.”