With its recent monetary policy decision, the ECB’s council did not decide on any further monetary policy easing. As a result, both the current low level of key interest rates and the volume of the pandemic emergency purchase programme (PEPP) as a measure to counter the consequences of the Corona crisis remain unchanged. Jan Krahnen, Director of the Leibniz Institute for Financial Research SAFE, explains:
“The ECB remains on its chosen course. It will be of particular interest to see how it actually implements its announced green policy. Because so far it is highly controversial to what extent a selective purchase program like the PEPP can have any noticeable influence at all on the cost of capital of companies in view of integrated global financial markets.
Even if such a programme does have a noticeable impact, it remains to be seen whether the ECB's policy also pays into, or improves or worsens, the greener and sustainable orientation of companies, rather than simply confirming the level these companies have already reached. The ECB must therefore harmonize its green monetary policy with the needs of both financial markets and companies.”