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The Recovery Of The Eurozone Economy Is Slowing Unexpectedly Fast

The recovery of the eurozone economy is slowing unexpectedly fast, warned the head of the European Central Bank Christine Lagard.

The Recovery Of The Eurozone Economy Is Slowing Unexpectedly Fast
Yazar: Tom Roberts

Yayınlanma: 30 Ekim 2020 00:12

Güncellenme: 23 Kasım 2024 00:44

The Recovery Of The Eurozone Economy Is Slowing Unexpectedly Fast

The recovery of the eurozone economy is slowing unexpectedly fast, warned the head of the European Central Bank Christine Lagard. The ECB signaled further monetary easing in December. Lagard said at a news conference after the ECB's Governing Council meeting that the eurozone economy "is losing momentum faster than expected". The rapid spread of the new coronavirus and the adoption of new restrictive measures "contribute to the deterioration of the short - term outlook". Economic indicators signal a "slowdown in economic activity" at the end of the year. The ECB's Governing Council did not change its monetary policy stance as expected on Thursday. This means that the key ECB rate remained at zero, the deposit rate at -0.50 percent and the overnight refinancing rate at 0.25 percent. The ECB will also continue its asset purchase programs. The Governing Council has stated that there is a high risk of a deterioration in the economic outlook for the euro area in the current context. Therefore, it will closely monitor incoming information on, for example, the dynamics of the pandemic, the prospects for potential vaccines or the evolution of the euro exchange rate. In December, it will reassess the economic outlook and risks on the basis of updated forecasts and recalibrate all instruments to help mitigate the effects of the pandemic and provide support for economic recovery.
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