ECB's Wunsch: ECB could extend PEPP if economy clearly deteriorates

European Central Bank (ECB) policymaker Pierre Wunsch said on Tuesday he was surprised by the resilience of the eurozone economies, as reported by Reuters.

Additional takeaways

"Household savings in 2020, the start of 2021 are enough to finance private consumption growth above 2019 level for 3-5 years."

"ECB is fine with financing conditions as they are."

"ECB can only keep financing conditions stable for a few months or a year."

"If the economy improves strongly it will have to mean some tightening at some point."

"If economy clearly deteriorates, ECB could extend PEPP beyond March 2022."

Market reaction

The EUR/USD pair continues to push higher after these comments and was last seen gaining 0.22% on the day at 1.1837.