ECB Villeroy speaks
- we will not allow unfavorable market dynamics to cause unjustified interest rate hikes in certain countries
- returns and spreads matter, even if we’re not targeting fixed levels
- in implementing the pandemic emergency purchasing program, we are and will remain flexible
- the euro system should be guided more by market dynamics and liquidity conditions than by predetermined purchase volumes
This should ease some of the upward pressure on some of the riskier countries, including Italy.