ECB: Sends message for new support measures

The European Central Bank (ECB) is expected to resist pressure at its meeting today to announce new support measures, but may pave the way for action in December as recent restrictions on controlling the coronavirus pandemic fuel fears The widening second wave of cases threatens to take over Europe before winter and Germany and France – the two largest economies in the Eurozone – announced new quarantine measures yesterday. These measures have given new weight to calls on the ECB to signal even greater and longer-term support for the Eurozone economy, which has already suffered an unprecedented recession this year. However, having already announced an unprecedented firepower in the spring, the ECB does not seem to be in a hurry to take action, hoping that continued bond purchases from it will be able to keep markets calm until a significant period of 2021. This pressure on ECB President Christine Lagarde to live up to the ECB’s commitment to maintaining very loose financing conditions, but without raising market expectations so much that even significant support in December is disappointing. The ECB will announce its policy decisions at 2.45 pm and will be followed by a press conference by Lagarde at 3:30 pm. home unless he is going to buy essential goods, have medical care or exercise for up to an hour a day. Citizens will be able to go to work if their employer finds it impossible to do so from home. Schools will remain open. “We believe that the activity (of the French economy) may be reduced by close to 20% compared to the normal level during this quarantine,” said JP Morgan, an economist, adding: Germany, whose economy has already lost momentum, will close its bars, restaurants and theaters from 2 November to 30 November, although schools will remain open. and stores will be able to operate with severe restrictions on access to them. Spain may have already returned to recession, as its government plans to declare a six-month state of emergency, while Italy has already announced severe restrictions. All of this puts the ECB’s view that the eurozone economy will return to normal. pre-crisis levels by the end of 2022. “The economic environment justifies more action now,” said a Berenberg executive, adding: “Things have deteriorated again in recent weeks. Economic growth has stalled in the fourth quarter.” Inflation expectations, which are also the ECB ‘s main concern, are also declining. Although the threat of deflation is not yet on the agenda, inflation is unlikely to rise to the ECB target, which is almost 2%, in the coming years. “Source: APE the latest News from Greece and the World, at

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