ECB's Centeno: Yield curve control unlikely to become key stability instrument in EU

"We are still very far from being out of the woods,"  European Central Bank (ECB) policymaker Mario Centeno said on Monday and added that they need to keep all policies actively in place, per Reuters.

Additional takeaways

"Monetary policy is not yet exhausted, especially when used in tandem with fiscal measures."

"Approval of next-generation EU fund taking longer than we would like."

"Decisions on PEPP adjustments will be taken on a monthly basis to respond to the challenges we observe."

"We can adapt a baseline amount of PEPP depending on market conditions."

"We are still hopeful better Q2-Q3 data will show 1.85 trillion PEPP amount set in December was appropriate."

"We have the flexibility to use all PEPP or leave part but we need to be humble about the future."

"We must be content with US stimulus positively impacting trade for Europe; oil prices and inflation could be next."

"Do not see yield curve control becoming key stability instrument in EU, would not support its strong implementation."

Market reaction

The EUR/USD pair largely ignored these comments and was last seen losing 0.27% on a daily basis at 1.1923.