The European Central Bank (ECB) thinks it is too early for additional measures to protect the economy against the consequences of the second corona wave. The ECB will probably come up with new measures in December, says top woman Christine Lagarde on the website of the on Thursday ECB.
Previously, the ECB took various measures to contain the economic consequences of the COVID-19 pandemic, including through a buy-back program. The European regulator will decide whether additional measures will be taken when there is more clarity in December about the consequences of the second wave of contagion.
However, policymakers are already looking at what options there are for the ECB to intervene, says Lagarde. She adds that it looks at all options, including interest rate changes.
The ECB has a policy of aiming for an inflation rate of plus 2 percent. In recent months, inflation has been negative. For example, inflation was minus 0.2 percent in August and minus 0.3 percent in September.
Lagarde does not yet say whether she expects the European economy to contract in the fourth quarter. It is still too early for that too, according to her.
The top woman does say that the economic recovery that started in the third quarter has come under pressure due to the second wave and the lockdown measures. The services sector, which also includes the travel industry, is particularly hard hit.
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