In December of last year, we made clear that we would not tolerate price adjustments that would undermine the transmission of our monetary policy. In our monetary policy statement, we declared that, within our mandate, under stressed conditions, flexibility will remain an element of monetary policy whenever threats to monetary policy transmission jeopardise the attainment of price stability.
This commitment can be put into practice within a very short period of time if we conclude that policy transmission is at risk. In that case, reinvestments from maturing securities under the PEPP can be adjusted flexibly across time, asset classes and jurisdictions. While the flexible allocation of PEPP reinvestments is one way to address fragmentation, our commitment is stronger than any specific instrument.