ECB to accelerate asset purchases under PEPP in Q2

The European Central Bank sprang a small surprise on, announcing that it would accelerate asset purchases over the following quarter.

At Thursday's meeting, the Governing Council decided that until June the ECB would conduct purchases under its so-called Pandemic Emergency Purchase Programme at a "significantly higher pace than during the first months of this year".

The overall size of the PEPP was however unchanged at €1.85trn and if "favourable financing conditions" could be maintained without exhausting the funds available then the ECB would do that.

But as at the last GC meeting, rate-setters left the door open to recalibrating the size of PEPP if needed.

In parallel, the ECB would continue purchasing assets at a monthly pace of €20bn under the separate Asset Purchase Programme.

All of the ECB's main policy interest rates were unchanged, with that on the main refinancing operations at 0.0%, that on the marginal lending facility at 0.25% and the deposit rate at -0.5%.