the Governing Council decided that it will apply flexibility in reinvesting redemptions coming due in the PEPP portfolio...accelerate the completion of the design of a new anti-fragmentation instrument.
Today the Governing Council met to exchange views on the current
market situation. Since the gradual process of policy normalisation was
initiated in December 2021, the Governing Council has pledged to act
against resurgent fragmentation risks. The pandemic has left lasting
vulnerabilities in the euro area economy which are indeed contributing
to the uneven transmission of the normalisation of our monetary policy
across jurisdictions.
Based on this assessment, the Governing
Council decided that it will apply flexibility in reinvesting
redemptions coming due in the PEPP portfolio, with a view to preserving
the functioning of the monetary policy transmission mechanism, a
precondition for the ECB to be able to deliver on its price stability
mandate. In addition, the Governing Council decided to mandate the
relevant Eurosystem Committees together with the ECB services to
accelerate the completion of the design of a new anti-fragmentation
instrument for consideration by the Governing Council.
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