European Central Bank faces pressure to shrink bond pile
How soon will the ECB shrink the €1.7 tln stash of bonds it bought during the pandemic (the PEPP)? It is already selling bonds from the larger portfolio amassed during the 2015 fear of deflation. Around €18 billion a month come due under PEPP. Some experts expect the ECB to announce in December that reinvestments will be lowered as early as March.