ECB sources: policymakers agreed to debate PEPP reinvestment end date

<p>ECB sources:</p><ul><li>Agreed to debate PEPP reinvestment end date this winter, and minimum reserves as part of the framework review.</li><li>ECB policymakers decided to delay discussions about ending bond purchases until early 2024.</li><li>There was no discussion about stopping reinvestments of cash from maturing bonds in the Pandemic Emergency Purchase Programme (PEPP) during the recent meeting.</li><li>The PEPP debate is expected to take place sometime during the winter.</li><li>The issue of the proportion of commercial banks' deposits to park at their central bank and the remuneration of these mandatory reserves will be addressed later.</li><li>Reinvestments are not expected to end abruptly, and the ECB may follow a gradual approach.</li><li>Some policymakers want to increase the portion of deposits that banks must park at their national central bank.</li><li>The ECB is conducting an operational framework review that includes discussions on minimum reserve rules.</li></ul>

This article was written by Greg Michalowski at www.forexlive.com.