the flexibility of the pepp ( pandemic emergency purchase programme ). right from the beginning of the pandemic crisis, the pepp differed from other asset purchase programs by being more flexible across jurisdictions, asset classes, and monthly volumes. iv its indicative envelope now reaches eur 1850 billion. i sometimes hear the suggestion from market analysts to provide a quantitative definition of “ favourable financing conditions ”, and that we should perhaps even introduce yield curve control on sovereign bonds. i disagree : as we are concerned about financial conditions for all borrowers – not just sovereigns – and different forms of financing – not just market funding, we stick to a multifaceted and holistic assessment. and the assessment of how favourable financing conditions are – while we look both at real and nominal yields – is done in conjunction with the inflation outlook, as explicitly stated in our latest governing council. so, we will make informed judgements rather than apply predetermined rules. not acting automatically does not prevent responding effectively, quite the contrary. our recent decision to conduct our purchases “ at a significantly higher pace ” was well noted by markets, and implemented promptly. it limited unwarranted transatlantic spillovers : since the start of the year, 10 year sovereign bond yields have increased by 0, 8pp in the us, against 0. 2pp in the euro area. the second corner of the triangle is related to the exit from our exceptional measures. the time to exit has not yet arrived. we will continue pepp net asset purchases “ until at least the end of march 2022 and, in any case, until [ we ] judge that the coronavirus crisis phase is over ” v. we still have ample time to judge and decide ; nevertheless in our present baseline scenario this crisis phase will be over by march 2022. but the possible end of net purchases under pepp by that date would not imply an abrupt tightening of our monetary policy. reinvestments under pepp would remain significant, net purchases would continue under the app, possibly somewhat adapted. hence we could still play the full “ quartet ” of our page 6 sur 9 accommodative monetary policy instruments, adding negative rates, liquidity provision, and forward guidance. the third corner of this triangle could indeed be an enhancement of our forward guidance consistent with the symmetry of our inflation objective. rather than flexible average inflation targeting, which leaves many questions unanswered, my preferred option would be the use of a strengthened and non

of cross - border processes and standards. we expect this initiative to strengthen the cross - border linkages and facilitate the intermediation of surplus funds within the region. this increase in cross - border flow of funds will further enhance the efficiency in the mobilization of surplus funds to meet the rising investment needs of the region. the implementation of this pilot platform is indeed timely and opportune and, will serve as an important catalyst for further development in linking financial markets within this region. this, i believe, is a development that we should all welcome. thank you. bis central bankers ’ speeches