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Coronavirus Poses A Threat To The Recovery Of The Euro Area Economy

The growing number of new cases of coronavirus infection poses a threat to the recovery of the euro area economy.

Coronavirus Poses A Threat To The Recovery Of The Euro Area Economy
Yazar: Tom Roberts

Yayınlanma: 11 Ekim 2020 23:31

Güncellenme: 19 Kasım 2024 20:34

Coronavirus Poses A Threat To The Recovery Of The Euro Area Economy

The growing number of new cases of coronavirus infection poses a threat to the recovery of the euro area economy. This was announced by the chief economist of the European Central Bank (ECB) Philip Lane. The key question, which is accompanied by a high degree of uncertainty, is when the spread of the virus will be stabilized, Lane told the Wall Street Journal (WSJ). According to current ECB forecasts, the inflation rate in the monetary union is expected to reach 1.3 percent over the next two years. This is well below the level of just under two percent that the ECB considers appropriate for maintaining price stability. Lane admitted that inflation is "very far away" from the target. However, it dampened expectations that the bank will announce further stimulus measures this month. According to him, the ECB will wait for the governments to react to the emergency situation, for example in the proposals for next year's state budgets.
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