European Central Bank chief Christine Lagarde may hint at more stimulus to come Thursday as concerns over a coronavirus resurgence and a stronger euro add to economic uncertainty.
As expected, ECB governors made no changes to the bank’s ultra-loose monetary policy at their latest meeting, once again held online because of coronavirus restrictions.
They kept interest rates at record lows and made no changes to their 1.35-trillion-euro ($1.6-trillion) pandemic emergency bond-buying scheme, aimed at keeping borrowing costs low to steer the eurozone through the virus-induced downturn.
The scheme, known as PEPP, is set to run “at least” until the end of June 2021 or until the ECB “judges that the coronavirus crisis phase is over”, the central bank said in a statement.
Attention now shifts to Lagarde’s 1230 GMT press conference in Frankfurt, where she will unveil the latest growth and inflation forecasts for the 19-nation currency club.