The recalibration intends to strengthen the transmission of official rate increases to the conditions of bank loans and to remove the constraints on the process of reducing the Eurosystem's balance sheet through the early repayment of TLTRO-III operations.
We postponed the discussion on the timing and methods of a gradual review of the reinvestment of the repaid capital on maturing securities as part of the financial asset purchase programmes, while maintaining the flexibility associated with the renewal of those under the pandemic emergency programme (PEPP).