ECB's Lagarde: Key challenge will be to bridge the gap until vaccination is well advanced

Author: Justin Low | Category: Central Banks

Comments by ECB president, Christine Lagarde

  • This is so the recovery can build its own momentum after
  • It is more important than ever for fiscal, monetary policy to work hand in hand
  • Euro area economic activity lost momentum going into Q4
  • The resurgence in virus cases is weighing on services in particular
  • Euro area economy expected to be severely affected by rapid increase in infections
  • Expects headline inflation to stay in negative territory until early 2021
  • ECB reserving favourable conditions for as long as needed to support jobs, credit
  • Full speech
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Lagarde also mentions that PEPP and TLTRO are likely to remain as the main tools for the central bank, so that continues to reaffirm market expectations that a rate cut is unlikely to be part of the "recalibration" going into the meeting next month.

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