ECB's de Guindos: ECB to re-evaluate PEPP as economic impact of COVID-19 unfolds

"The Governing Council will keep re-evaluating whether the size, duration and composition of the PEPP remain appropriate as the economic consequences of the COVID-19 pandemic unfold," European Central Bank (ECB) Vice President Luis de Guindos said on Wednesday.

Additional takeaways

"We stand ready to adjust all of our instruments, as appropriate, to ensure that inflation moves towards our aim in a sustained manner."

"Despite pre-existing vulnerabilities, the euro area financial system weathered the immediate stress relatively well."

"The shape and strength of the recovery are uncertain and this uncertainty will persist for some time."

"The deteriorating economic conditions may give rise to debt sustainability concerns in the public and private sector."

"Policy measures have so far helped prevent a health crisis turning into a systemic financial crisis, but medium-term risks to financial stability have increased markedly."

Market reaction 

The EUR/USD pair largely ignored these comments and was last seen gaining 0.25% on the day at 1.1365.