While partly reflecting improved economic prospects, a sustained rise in market rates could translate into a tightening of wider financing conditions that are relevant for the entire economy. Such a tightening would be premature and would pose a risk to the ongoing economic recovery and the outlook for inflation.
Against this background, at its meeting on 10 June the Governing Council decided to confirm its very accommodative monetary policy stance. In particular, based on our joint assessment, we expect to continue to conduct net asset purchases under the pandemic emergency purchase programme (PEPP) over the coming quarter at a significantly higher pace than during the first months of the year.