ECB's Villeroy says financing conditions focus of latest stimulus decision

Financials

Reuters Staff

PARIS, Dec 11 (Reuters) - The European Central Bank is targeting favourable financing conditions rather than pumping a given amount of liquidity into the economy with its latest stimulus decision, ECB policymaker Francois Villeroy de Galhau said on Friday.

The ECB increased on Thursday the overall size of its Pandemic Emergency Purchase Programme (PEPP) by 500 billion euros to 1.85 trillion euros and extended the scheme by nine months to March 2022.

Villeroy, who is also head of France’s central bank, said on BFM Business radio that the aim was not “to invest a certain amount each month, but rather a result”, which is favourable financing conditions for the economy.

“We will do less if the financing conditions remain favourable like today. If the opposite is needed, we will do more,” he said. (Reporting by Leigh Thomas; Editing by Jon Boyle)