The euro zone economy is at a turning point but its recovery must be firm and sustainable before the European Central Bank can debate clawing back emergency support, ECB President Christine Lagarde told Politico in an interview.
The ECB last week agreed to maintain an elevated pace of bond purchases to keep borrowing costs ultra low and policymakers did not even entertain questions about tapering support, even as growth rebounds faster than earlier predicted.
“I am not suggesting that the pandemic emergency purchase programme (PEPP) is going to stop on 31 March,” Lagarde was quoted on Monday as saying. “We have plenty of flexibility, but in terms of economic outlook we are heading in the right direction.
“It is far too early to debate these…