Chief Economist for Financial and Economic Analysis
Sonsoles Castillo, Chief Economist for Financial and Economic Analysis at BBVA Research.She joined BBVA Research in 1997. She has been Chief Economist for Capital Flows, for Europe and for Emerging Markets. Areas of interest, Monetary policy, European integration and Financial Markets.Research assistant at FEDEA (Fundación de Estudios de Economía Aplicada).Gained a Scholarship for Research Staff Training at the Faculty of Economics of the University of Alcalá de Henares.BA Studies Economics, University of Alcalá de Henares.
Today’s wait and watch policy meeting suggests that the ECB will stay put in the short to medium-run regarding monetary policy, awaiting better clarity on the evolution of the pandemic, the recovery and financial conditions, while continuing to use the PEPP with high flexibility, preserving favourable financing conditions.
The ECB action was broadly in line with what we were expecting (somewhat to the lower bound) announcing a package of further accommodative measures. Moreover, the central bank reaffirmed its readiness to adjust its instruments further if needed (as risks remain tilted to the downside).
The course begins with the hope that the worst of the pandemic and the greatest economic impacts are behind us. The combination of unprecedented monetary and fiscal stimuli has been key to softening the impact of the crisis. With the emergency behind us, central banks are reviewing their strategies.