ECB holds rates as it assesses strength of pandemic recovery

ECB holds rates as it assesses strength of pandemic recovery
  • Clock-gray 02:32
  • calendar-gray 11 September 2020

The European Central Bank has left its monetary policy unchanged as it assesses whether the economic recovery from the coronavirus pandemic could be held back by a fresh surge in infections and the euro’s rise, APA reports citing Financial Times.

The eurozone’s central bank said it “continues to stand ready to adjust all of its instruments, as appropriate, to ensure that inflation moves towards its aim in a sustained manner”.

The central bank kept its main deposit rate unchanged at minus 0.5 per cent and said its bond purchases would continue “as long as necessary to reinforce the accommodative impact of its policy rates”.

Speaking at the ECB’s press conference after the rate decision, its president Christine Lagarde said the central bank’s governing council would “assess incoming information, including developments in the exchange rate with regards to its implications for the medium-term inflation outlook”.

The manufacturing sector continues to recover but the services sector has seen momentum slow recently, Ms Lagarde said. Consumer demand is improving but remains hampered by the high level of uncertainty about the economic outlook, she added.


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