ECB sources: Hawkish members unhappy about extending PEPP reinvestments to 2024, open ended APP purchases

According to anonymous sources at the European Central Bank, some hawkish members of the governing council were unhappy about extending reinvestments from the Pandemic Emergency Purchase Portfolio (PEPP) to 2024. Moreover, some were unhappy about the fact that the ECB did not set an end date to its Asset Purchase Programme. 

ECB policymakers also reportedly disagreed no the inflation outlook, with some stressing upside risks to the new forecasts, the sources added. Apparently, according to the sources, it was the governors of the Belgian, Austrian and German central banks that disagreed.

Market Reaction

Having been above 1.1350 earlier in the session, EUR/USD continues to pull back towards the 1.1300 level, though it is not clear whether the latest sources have anything to do with the recent downside.