European Central Bank to review bond-buying tool launched in response to pandemic - FT

FILE PHOTO: The headquarters of the European Central Bank (ECB) are pictured in Frankfurt, Germany, July 8, 2020. REUTERS/Ralph Orlowski

(Reuters) - The European Central Bank (ECB) will review its emergency bond purchase scheme that was introduced in response to the coronavirus crisis in March, the Financial Times reported on Sunday, citing two of ECB’s governing council members.

The questions for the review would be to consider how long the Pandemic Emergency Purchase Programme (PEPP) should continue and whether some of its extra flexibility should be transferred to the ECB’s longer running asset-purchase schemes, the newspaper added, citing the members.

The ECB launched this scheme in March and then later increased its size to 1.35 trillion euros ($1.60 trillion) in June.

Reporting by Shubham Kalia; Editing by Lisa Shumaker