- ECB’s Executive Board member Mesrch: ECB continues to stand ready to adjust all of its instruments, as appropriate
Market news
19 October 2020
ECB’s Executive Board member Mesrch: ECB continues to stand ready to adjust all of its instruments, as appropriate
- Euro-area's economic recovery remains incomplete and prone to setbacks
- Baseline scenario of September ECB staff macroeconomic projections factors in resurgence of COVID-19 infection rates and tightening of containment measures
- Projections foresee real GDP growth recovering by 8.4% in Q3 and by 3.1% in Q4
- Economic downturn has also adversely affected inflation dynamics
- Our projections foresee headline inflation remaining negative into early next year
- To counter effects of the pandemic shock, we have adopted package of appropriate, proportionate and complementary measures; these measures are showing their effect and aim to safeguard medium-term price stability
- Without these mutually reinforcing policy measures, outlook for inflation and growth would be much worse
- I want to stress that fiscal support measures have been crucial complement to the ECB’s crisis response.
- Continued fiscal support will remain crucial to sustain ongoing recovery - assuming fiscal spending is efficient and effective
- ECB Governing Council will assess incoming information very carefully, including developments in the exchange rate, while ensuring that this incoming information is only accounted for once in our assessment
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