ECB QE Monitor - January 2021

Monday 11 January 2021

  • In December, the ECB bought €57.2bn under the PEPP and €21.1bn under the APP.
  • The ECB's balance sheet is now equivalent to 61% of euro area GDP compared to 39% at the start of the year.
  • PEPP:
    • Pandemic bond-buying program was raised by €500bn euros to a total of €1,850 billion and extended by nine months to at least the end of March 2022.
    • The ECB already used up around €757bn or 41% of its EUR1.85tn PEPP envelope.

Other news

Vignette - Italy outlook
18/01/2021 Research / Market

Italy: ECB's umbrella to protect bond market, despite uncertain political situation

Political situation: On 13 January, Italia Viva – a minor coalition partner led by former Prime Minister Matteo Renzi – pulled out of the ruling coalition, leaving the government short of a majority in the Senate. However, we believe that snap elections are unlikely for now. In our view, the most likely scenarios are: Prime Minister Giuseppe Conte could seek to win a confidence vote, with support from parties both inside and outside the ruling majority and also unaffiliated lawmakers (Gruppo Misto); Conte could step down, triggering a new round of talks that could eventually lead to a new administration, headed by Conte himself or another Prime Minister, with support from the same alliance; or a caretaker administration could be appointed to manage the government until the next election.