ECB Said to Study New Bond-Buying Plan

The transcript discusses the European Central Bank's (ECB) pandemic emergency purchase program (PEP) and the concerns of policymakers about the potential widening of spreads when large-scale asset purchases stop. The PEP, a crisis tool, is set to end in March, and there is a need to assure investors of market stability. The ECB is exploring options to transition the program into a new form, as the current program has achieved its goal of stabilizing inflation. The focus is now on moving beyond crisis measures and maintaining inflation at 2%.

What are the main concerns of policymakers regarding the end of large-scale asset purchases?

Why is the ECB considering transforming the pandemic program into something different?

What specific purpose does the pandemic program serve according to the text?

How has the pandemic program impacted inflation pressures according to the speaker?

What is the ECB's target inflation rate mentioned in the text?