The ECB sees no threat of deflation from the corona pandemic

Europe’s central bankers responded to the first wave of the pandemic with a gigantic bond purchase program. Nevertheless, the inflation rate is currently negative, which President Lagarde does not want to be understood as deflation. In December, the ECB should react to the second wave of pandemics by increasing its purchases.

—

The President Christine Lagarde and the members of the Council of the European Central Bank (ECB) resisted the temptation on Thursday to react immediately with new measures to the second wave of the corona pandemic in Europe. Only on Wednesday, Germany, the most populous and economically strongest member state, announced a further reduction in public life for November. In many member states of the monetary union there were similar or even stronger restrictions in the weeks before. These have already dampened economic activity in October and will have an even greater impact in November.