ECB's Lane: In a severe scenario, GDP would fall by 12% in 2020

Author: Adam Button | Category: Central Banks

Comments from the ECB's chief economist:

  • We must ensure our monetary stance provides sufficient accommodation and guards against the escalation of tail risks
  • We are fully prepared to further adjust our instruments if warranted
  • Options including increasing size of PEPP and adjusting its composition, as much as necessary
  • APP and PEPP estimated to compress the term premium by around 80 bps on 10 year
The ECB is in a battle to convince the world (and German courts) that it has the power to stem the decline in the economy and the long-term problems in the eurozone.

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