The European Central Bank is seen holding interest rates at record-low levels and leaving the pace of emergency bond purchases unchanged on June 10th, even if policymakers acknowledge an improvement in growth prospects due to the ongoing re-opening efforts and the rapid pace of COVID vaccination. The bank boosted the speed of bond-buying earlier this year, but a recent fall in borrowing costs in the Euro Area has reduced the need for aggressive stimulus. Last month, ECB President Christine Lagarde said it was “far too early” to discuss tapering the bank’s €1.85 trillion PEPP, while board member Fabio Panetta rejected any reduction in emergency bond buys.
